Commercial Courts in Germany: an alternative for international disputes
Germany's new Commercial Courts hear major commercial disputes in English. Jurisdiction, advantages, and how to compare them to international arbitration.
On 1 April 2025, the Act to Strengthen Germany as a Place of Justice by Introducing Commercial Courts and English as a Court Language in Civil Jurisdiction (Justizstandort-Stärkungsgesetz) entered into force.
The act brings far-reaching changes to how commercial disputes are handled in Germany. The goal is to make Germany more attractive as a place of justice, in particular for international companies.
What does the introduction of the Commercial Courts mean in practice for international businesses? This article walks through the main advantages and the jurisdictional reach, and shows when going to the new courts is the right call.
What are the Commercial Courts and why were they introduced?
The Commercial Courts are specialized chambers at German Regional Courts (Landgerichte) and Higher Regional Courts (Oberlandesgerichte) that hear large commercial disputes. The main aim is to make Germany more attractive as a forum in international competition and to offer an efficient, practice-oriented alternative to often lengthy proceedings or expensive arbitration. A key advantage: the whole proceedings can be conducted in English.
What the Commercial Courts offer
English as the language of proceedings
International contracts and business communication often run in English. Conducting the whole proceedings in English cuts translation costs and reduces the risk of misunderstandings.
The parties have to agree expressly or impliedly to English as the language of the proceedings, or the defendant joins issue in English without objection in its statement of defence (Section 184a(3) GVG).
Even the Federal Court of Justice can continue the proceedings in English if the parties ask for it and the panel agrees (Section 184b GVG).
Specialised judges and faster procedure
The judges at the Commercial Courts have demonstrable expertise in international business law. The act also provides for streamlined and digital procedural steps to enable faster decisions.
Protection of trade secrets
Trade-secret protection during the proceedings is reinforced by Section 273a ZPO. The court can now classify information at issue as requiring confidentiality if it qualifies as a trade secret.
Efficient proceedings
Section 612 ZPO requires Commercial Courts and Commercial Chambers to hold an early case-management hearing, at which the court agrees with the parties on the organisation and timing of the proceedings, unless substantive or organisational reasons stand against it. This is meant to make the proceedings more efficient and has long proven itself in arbitration as the case-management conference (see, for example, Annex 3 to the DIS Arbitration Rules). From my own experience as a commercial lawyer with more than 18 years of litigation, this is a very welcome step.
On the parties' application, a readable verbatim transcript can be produced under Section 613 ZPO.
A revision to the Federal Court of Justice is available against first-instance judgments of the Commercial Court. The revision does not require separate leave (Section 614 ZPO).
Which disputes fall within the Commercial Courts' jurisdiction?
The Commercial Courts have first-instance jurisdiction for:
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civil disputes between businesses, except matters of industrial property, copyright, and claims under the Unfair Competition Act;
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disputes arising from or in connection with the acquisition of a company or shares in a company; and
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disputes between a company and members of its management or supervisory board.
The Commercial Court's jurisdiction can be limited to specific subject areas. It can also be extended to subject areas where the Regional Court has exclusive jurisdiction or another exclusive venue is provided.
The amount in dispute must be at least EUR 500,000.
Overview of Commercial Courts and Commercial Chambers by federal state
Baden-Württemberg
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Commercial Court at the Higher Regional Court of Stuttgart, specializing in corporate disputes and M&A
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Commercial Chambers at the Regional Court of Stuttgart
A model clause (the "Stuttgart model clause") is available here.
Sources: Press release of the State Government of Baden-Württemberg of 1 April 2025, Commercial Court Baden-Württemberg
Bavaria
- Commercial Court at the Higher Regional Court of Munich
Berlin
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Commercial Court at the Court of Appeal (Kammergericht), specializing in construction and architects' law
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Commercial Chambers at the Regional Court of Berlin II, specializing in construction and architects' law
Source: Press release of the Court of Appeal of 1 April 2025
Bremen
- Commercial Court at the Hanseatic Higher Regional Court in Bremen, specializing in aerospace, logistics, and maritime trade
Hamburg
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Commercial Court at the Hanseatic Higher Regional Court, specializing in construction law, banking and finance, corporate law, and M&A
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Commercial Court at the Hanseatic Higher Regional Court, specializing in insurance, transport, shipping, and traffic
Sources: Press release of the Free and Hanseatic City of Hamburg, Commercial Court Hamburg
Hesse
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Commercial Court at the Higher Regional Court of Frankfurt, planned for 1 July 2025
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Commercial Chambers at the Regional Court of Frankfurt, planned for 1 July 2025
Source: Press release of the Hessian Ministry of Justice and Rule of Law of 1 April 2025
Lower Saxony
- Commercial Courts at the Higher Regional Court of Celle, expected to have 2 panels; introduction planned for 2025
Lower Saxony does not envisage a restriction to specific subject areas under Section 119b(1) GVG. Commercial Chambers are expected to be set up at one Regional Court in each of the three Higher Regional Court districts. Details — such as whether to set an amount-in-dispute threshold at the Commercial Chambers level — are currently being reviewed.
Source: Notice from the press office of the Lower Saxony Ministry of Justice, 11 April 2025
North Rhine-Westphalia
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Commercial Court at the Higher Regional Court of Düsseldorf, specializing in construction and architects' matters
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Commercial Court at the Higher Regional Court of Düsseldorf, specializing in insurance law (in particular D&O insurance)
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Commercial Court at the Higher Regional Court of Düsseldorf, specializing in corporate and post-M&A disputes
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Commercial Chambers at the Regional Courts of Bielefeld, Düsseldorf, Essen, and Cologne. At the same time, the existing specialisations at those courts for renewable-energy law (Regional Courts of Bielefeld and Essen), IT disputes (Regional Court of Cologne), and corporate transactions (Regional Court of Düsseldorf) will be expanded, to the extent those proceedings are to be conducted in English.
Sources: Press release of the State Government of NRW of 12 March 2025; Press release of the Higher Regional Court of Düsseldorf
Commercial Courts versus arbitration: which is the better choice?
The decision between a Commercial Court and arbitration depends on the individual case and should be part of the drafting and negotiation of an international contract.
Arbitration offers more flexibility in shaping the procedure and is internationally accepted. Arbitral awards can also be enforced internationally in significantly more countries than judgments of German courts (which does not change with the introduction of the Commercial Courts in Germany).
Commercial Courts, by contrast, bring state authority and, as a rule, lower procedural costs. The losing party benefits from multiple instances. The enforceability of judgments outside the EU, however, is the weak spot.
A careful weighing of the pros and cons is essential.
Conclusion
The introduction of the Commercial Courts is a significant step forward for Germany as a place of justice. They give companies an attractive, efficient, and internationally oriented option for resolving commercial disputes.
The further development is worth watching: more adjustments may follow to strengthen Germany's position in this area. They are also urgently needed.
Despite the positives, challenges remain. The amount-in-dispute threshold of EUR 500,000 is relatively high. Not all federal states will set up Commercial Courts. The Federal Court of Justice can also refuse to continue proceedings in English. Practice will show how effectively the new courts operate and whether they can compete internationally. The same applies to the German legislator's stated aim of establishing the state courts as an alternative to arbitration in major commercial disputes.
Reference: Poleacov, P. (2025). Commercial Courts in Germany: an alternative for international disputes. INN.LAW. https://inn.law/en/perspectives/commercial-courts-germany/