That's because they own and co-allocated their own servers.
and germany doesnt "provide" offshore hosting, it IS offshore (offshore means anywhere OFFShore of the united states) lol.
And also you should see all the law suits rapidshare has and hides - also rapidshare doesnt "host" illegal files persay. Other people upload them, and its really not their fault. they have a form you can submit to have the content removed.

whereas u being the webhosting, not even owning your servers, would be liable and your data center could just shut you down. no money back. they could even sue.