The Justizstandortstärkungsgesetz (‘Justice Location Strengthening Act’) entered into force on the 1st of April 2025, upgrading Germany’s judicial system. The law’s aim is to make German civil courts more attractive for major commercial disputes. For instance, commercial proceedings before such courts may also be conducted in English, whereas virtual hearings will also be permitted – significant changes that open up new possibilities, particularly for companies operating internationally.

Starting 1st of July 2025, commercial cases may be submitted to the commercial courts in Frankfurt am Main. According to section § 119b GVG the court is competent inter alia for disputes exceeding a value of EUR 500,000. Whether corporate disputes, post-M&A conflicts or (director) liability issues— this new judicial structure provides an attractive alternative to arbitration with a clear focus on the needs of the business community.

The procedural framework is specifically designed for complex commercial matters and is similar to arbitration proceedings. Therefore, the courts offer early Case Management Conferences, structured rules concerning evidence and the involvement of third parties, clear provisions on preliminary legal protection and safeguards for confidential business information. In addition, parties may request real-time transcripts of the hearings — a significant improvement in transparency and traceability.

In terms of infrastructure, the commercial courts are modern and adhere to international standards. Hearings are held in modern, well-equipped courtrooms located in central Frankfurt, with dedicated consultation and meeting rooms for the parties and the court. The technical facilities allow for both in-person and hybrid formats, offering flexible participation options.

Another key aspect is the cost transparency: Proceedings before the commercial courts are subject to standard German statutory court fees — in contrast to many arbitration proceedings, which often incur significantly higher and less predictable costs.

Overall, the commercial courts strengthen Germany’s position as a venue for international business litigation within a public and independent and specialized judiciary. They offer a modern, cost-effective and internationally compatible forum for dispute resolution for foreign companies operating in Germany and constitute a genuine alternative to arbitration. Nonetheless, their use should be considered on a case-by-case basis, taking into account the parties’ specific commercial and factual interests.