NextFin News - Amazon has solidified its dominance in the European e-commerce landscape, reporting a significant acceleration in revenue growth across its two largest regional markets, Germany and the United Kingdom, throughout the 2025 fiscal year. According to the company’s latest annual financial report released in February 2026, Amazon generated $45.9 billion in Germany and $43.2 billion in the United Kingdom. These figures represent a year-over-year growth of 12.3 percent and 14.2 percent, respectively, marking a notable increase from the 8.7 percent and 12.7 percent growth rates recorded in 2024.
The performance in these European hubs has notably outstripped Amazon’s growth in other major global markets. For comparison, the company’s revenue in the United States grew by 11.8 percent, while Japan saw a 12.0 percent increase. While Germany maintains its status as Amazon’s largest market in Europe, the United Kingdom’s higher growth rate suggests a narrowing gap between the two territories. Globally, Amazon’s total revenue reached $716.9 billion, with the 'Rest of World' segment—which includes these European powerhouses—surpassing the $100 billion milestone for the first time to reach $107.5 billion.
However, this commercial success arrives alongside intensified regulatory pressure. On February 5, 2026, the Bundeskartellamt, Germany’s national competition authority, issued a landmark ruling against Amazon. The regulator, led by President Andreas Mundt, banned the company from exerting price controls on its third-party selling partners. The watchdog found that Amazon had been influencing prices by excluding offers from the 'Buy Box' or removing them entirely if they did not meet the platform's price expectations. Consequently, Amazon has been ordered to repay approximately €59 million in economic benefits gained through these anti-competitive practices. Amazon has since announced its intention to appeal the decision.
The acceleration of growth in Germany and the UK, despite being mature markets, indicates a successful shift in Amazon’s regional strategy. By positioning itself as an 'ally' to small and medium-sized enterprises (SMEs), the company has effectively integrated local third-party sellers into its ecosystem. In Germany, Amazon.de now accounts for an estimated 60 percent of all online sales. This concentration of market power is a double-edged sword; while it drives efficiency and logistics excellence, it triggers the 'gatekeeper' scrutiny inherent in the European Union’s Digital Markets Act (DMA) and national equivalents like Germany’s GWB Digitalisation Act.
The Bundeskartellamt’s intervention highlights a critical friction point: the conflict between Amazon’s desire for price competitiveness and the autonomy of independent retailers. Mundt argued that Amazon should lower its own fees and commissions to achieve lower consumer prices rather than forcing sellers to compress their margins. This regulatory stance suggests that future growth may need to be driven by service innovation—such as advertising and logistics-as-a-service—rather than retail price manipulation. Amazon’s advertising revenue in Germany has already shown robust growth, providing a high-margin buffer against potential retail margin compression resulting from the price-control ban.
Looking forward, the trajectory for 2026 suggests a 'normalization' of double-digit growth as Amazon expands its infrastructure in secondary European markets like the Netherlands and Belgium. However, the UK market remains particularly dynamic. Following the trade adjustments of the post-Brexit era, Amazon’s localized fulfillment strategy in the UK has allowed it to bypass cross-border friction, explaining the 14.2 percent surge. If current trends persist, the UK could potentially rival Germany for the top European spot by 2027.
The legal battle over the €59 million fine and the Buy Box mechanics will be a pivotal trend to watch. If the Bundeskartellamt’s ruling is upheld on appeal, Amazon will be forced to redesign its algorithm to be more price-agnostic regarding third-party offers. This could lead to higher price volatility on the platform but may also foster a more diverse seller ecosystem. For investors, the key takeaway is that while U.S. President Trump’s administration focuses on domestic industrial policy, Amazon’s international segments are becoming the primary engines of its growth acceleration, albeit under the watchful eye of increasingly assertive European regulators.
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