Amazon may not allow EPUBs to be read directly on the Kindle, but it still makes use of them in creating Kindle e-books. Given that they’re pretty much the industry standard for e-books outside of Amazon, it would be foolish of the company not to.
PaidContent has a report on Cork, Ireland e-book wholesaling company ePub Direct receiving €1.3 ($1.69/£1.09) million in venture capital funding to grow its business. The company supplies titles to 116 stores, including Amazon, Apple, and Waterstone’s, and also serves over 15,000 online libraries. The article isn’t clear on who ePub Direct supplies them from, but I would imagine it’s mostly European publishers.
Now if only Amazon would let people read EPUBs directly on its Kindle!