"Europe" consists of more countries than "Belgium, Denmark, Finland, Gibraltar, Iceland, Luxembourg, Netherlands, Poland, Portugal or Sweden".
Shipping from amazon UK never was free to Germany or France, and yet movies and some pricebound items (like the PS3 at start) often are vastly cheaper to buy there. The package and posting from items directly sold by amazon usually are less than four pounds, even if I add four TV sets it does not go beyond seven pounds.
I have no idea how the postage to those countries above differ, but I hardly see the sky falling.
If the price now exceeds domestic distributors then buy there, if it is still cheaper stick with amazon.
If you take your image "literally" and that are the true shipping costs, you seriously cannot say that you wonder why amazon stops offering that service. If it really did cost 12 pounds to send that item, and it was subventioned until now, all other customers had to pay for your delivery.