Germany: Compliance

German works councils hold binding co-determination rights over monitoring systems, staff questionnaires, and personnel measures in internal investigations. This guide maps the statutory triggers under the Works Constitution Act, explains when system-level consent differs from case-level information duties, and shows how to balance speed and confidentiality with mandatory consultation—without automatically losing evidence in court.

The EU Cyber Resilience Act establishes cybersecurity as a prerequisite for EU market access, affecting not only hardware products with digital elements but also standalone software. Manufacturers must navigate new conformity assessments, CE marking requirements, and mandatory free security updates during defined support periods. These requirements may force companies to fundamentally rethink their go-to-market processes and pricing calculations.

The Berlin Public Prosecutor's Office has launched an investigation into potential violations of EU sanctions against Russia in connection with the now-closed 'Russia House' cultural center in Berlin. Authorities are examining whether tenants or occupants of the facility may have breached the Foreign Trade and Payments Act through sanctions-related offenses.

The European Commission's July 2026 proposal to revise the EU Emissions Trading System Directive introduces significant changes to how carbon capture, use and storage activities are regulated and incentivized.

The European Commission has proposed replacing the EU's three core procurement directives with a single, directly applicable Regulation that would fundamentally reshape how companies compete for public contracts across Member States. The reform introduces mandatory quality criteria thresholds, embeds ESG considerations as evaluation factors, and establishes new security and European-preference provisions that could restrict participation based on ownership, supply chain exposure, and strategic dependencies.

The EU Pharma Package introduces significant reforms to regulatory data and market protection periods for medicinal products, fundamentally altering the current "8+2(+1)" protection formula.

Germany's transition period for Payment for Order Flow (PFOF) has ended, and BaFin has issued detailed supervisory guidance outlining prohibited circumvention structures and expectations for PFOF-free business models. The regulator applies an economic substance test that looks beyond mere form, requiring firms to justify fees in vertically integrated groups and trace orders through intermediary chains back to retail clients.

Sustainability criteria have evolved from voluntary commitments to critical factors in corporate financing. Companies seeking refinancing during crisis must now not only address operational and financial challenges but also credibly demonstrate ESG transformation, navigating potential deal-breakers, restructuring concept requirements, and greenwashing liability risks.

Der Europäische Gerichtshof hat entschieden, dass Sollzinssätze bei Verbraucherkrediten nur auf den tatsächlich bereitgestellten Kreditbetrag angewendet werden dürfen – nicht auf mitfinanzierte Kreditkosten wie Versicherungsprämien oder Gebühren. Diese Klarstellung hat weitreichende Folgen für Kreditgeber in der gesamten EU, die ihre Produktgestaltung, Preislogik und Kundenunterlagen entsprechend anpassen müssen. Besonders betroffen sind Banken und Anbieter von