Sectors

Sectors and German business law: why industry context matters

Legal advice is most useful when it understands the industry it serves. The same rule of German or EU law plays out very differently across sectors: the Data Act means access-by-design obligations for a car manufacturer, switching rights for a cloud provider and new data-sharing contracts for a machine builder; investment screening is a formality for a retail chain but can decide a defence or semiconductor deal; and a works council's co-determination rights shape automation projects in manufacturing as much as AI tools in financial services.

Our sector pages bring together the regulatory, transactional and disputes issues that matter most in each industry in Germany, and link to our practice pages and insights for detail.

Sector knowledge also means knowing the authorities: the Federal Network Agency for energy, telecoms, digital services and now AI and data; BaFin for finance and insurance; the Federal Institute for Drugs and Medical Devices for health products; the Federal Office for Economic Affairs and Export Control (BAFA) for export licences; and the procurement offices of the armed forces for defence.

This page gives an overview of the ten sectors we cover and the cross-cutting legal trends of 2026: the reform of EU digital regulation, the energy transition, supply chain and sustainability rules, investment screening and export controls, and the restructuring of industries under pressure. Each section links to the detailed sector page.

Industrial and strategic sectors

Automotive and mobility

The German automotive industry is in the middle of a transformation from combustion engines to electric drives and software-defined vehicles, while facing price pressure, tariffs and new competitors. Legal issues range from supply chain contracts and supplier insolvencies to type approval, product compliance and recalls, the law on autonomous driving, which allows level 4 vehicles in approved operating areas (§§ 1d ff. Road Traffic Act, StVG), and access to vehicle data under the EU Data Act.

Restructurings of plants and suppliers require works council negotiations and, often, StaRUG or insolvency tools. Suppliers squeezed between rising costs and fixed prices frequently seek price adjustments, while carmakers secure supply through support agreements, and disputes over continued deliveries can escalate to preliminary injunctions within days. Our automotive and mobility page explains the framework.

Manufacturing and the Mittelstand

Mechanical and plant engineering and the wider Mittelstand, Germany's family-owned medium-sized companies, rely on robust supply and sales contracts, protection of technology and know-how, and compliance with export control law, because many machines and components are dual-use items. Succession and the sale of family companies, financing in a tighter credit market and co-determination with works councils are recurring themes.

The Machinery Regulation, which applies from 20 January 2027, and the Cyber Resilience Act add product compliance duties. Many Mittelstand companies are also exposed to the energy transition through their own energy costs and to digital regulation through connected products and data-driven services. See our manufacturing and Mittelstand page.

Chemicals and process industries

The chemical industry is shaped by EU chemicals legislation (REACH and CLP), the proposed universal restriction of PFAS, immission control permits under the Federal Immission Control Act (BImSchG), plant safety rules, and emissions trading. Decarbonisation through hydrogen, electrification and carbon capture requires large investments and support, and chemical parks raise specific issues of site services and shared infrastructure. Site closures and the transformation of production units raise employment, environmental and contractual questions at the same time. Our chemicals and process industries page covers these topics.

Defence, security and space

Defence has become a growth sector in Germany. Increased defence budgets and procurement acceleration legislation for the armed forces (Bundeswehr) create opportunities for established contractors and new entrants, including start-ups and companies converting civil production.

At the same time, the sector is tightly regulated: war weapons require licences under the War Weapons Control Act (KrWaffKontrG), military equipment exports require licences under foreign trade law, employees and facilities may need security clearances, and acquisitions of defence companies by foreign investors are subject to sector-specific investment screening. EU defence programmes and German and EU space law are further topics. See our defence, security and space page and our export control and sanctions practice.

Energy, utilities and infrastructure

Energy is the sector in which German law changes fastest. The Renewable Energy Sources Act (EEG) targets at least 80% renewable electricity in gross consumption by 2030 (§ 1(2) EEG), grid connection capacity has become the main bottleneck, and the heat transition requires municipal heat planning and new district heating networks. Municipal utilities (Stadtwerke) face large investment needs in grids and heat while their traditional gas business declines, and energy-intensive industry needs secure, affordable supply. Transactions involve renewable portfolios, storage, grid assets and utility partnerships. Our energy and utilities page addresses utilities, municipal companies, energy-intensive industry and investors, complementing our energy and infrastructure practice.

Infrastructure investment more broadly is supported by a special fund of up to EUR 500 billion for infrastructure and climate neutrality, set up under Article 143h of the Basic Law. Transport, digital, social and energy infrastructure projects compete for funds, contractors and permits, and procurement law was reformed in 2026 to speed up awards. See our page on infrastructure projects and PPPs.

Energy-intensive industry

For steel, chemicals, glass, paper and other energy-intensive industries, energy law is as important as industry-specific regulation. Electricity and gas procurement, special network charges, relief from levies and electricity price compensation, carbon costs under the EU Emissions Trading System and the transition to hydrogen or electrified processes determine competitiveness. Support instruments such as climate protection contracts compensate the additional costs of low-carbon production, but they come with milestones and repayment obligations. Companies in these sectors should treat their energy and climate position as a board-level legal topic.

Technology, media and telecoms

Technology companies in Germany operate under a dense layer of EU digital regulation: the GDPR, the Data Act, the AI Act, the Digital Services Act and Digital Markets Act, the NIS2-based Federal Office for Information Security Act and the Cyber Resilience Act. Several of these instruments were adjusted in 2026: Regulation (EU) 2026/1744 moved the application of the AI Act's high-risk rules to 2 December 2027 for Annex III systems and 2 August 2028 for Annex I products, and the Federal Network Agency became Germany's main market surveillance authority for AI and the competent authority for the Data Act.

Telecoms operators are regulated under the Telecommunications Act (TKG), and media companies under state media law and copyright law. Our technology, media and telecoms page explains how these rules affect software, SaaS, semiconductors, data centres, telecoms and media companies, and our data protection, IT and digital practice covers each instrument in detail.

Within technology, sub-sectors have distinct profiles. Semiconductor projects depend on state aid under the EU Chips Act framework, export controls and investment screening; data centres on grid connection and the efficiency requirements of the Energy Efficiency Act; software and SaaS providers on contract law, data protection and the Data Act's switching rules; and media companies on copyright, press law and state media regulation. Technology M&A requires careful IP, open-source and data due diligence, because the value of a target often lies in its code and data rather than in physical assets.

Financial services and insurance

Financial services

Banks, payment institutions, asset managers and fintechs need licences from BaFin or the European Central Bank and are subject to ongoing supervision. Since 17 January 2025, the Digital Operational Resilience Act (DORA) has set uniform ICT risk management, incident reporting and third-party risk requirements for financial entities, and the Markets in Crypto-Assets Regulation (MiCAR) regulates crypto-asset service providers. The EU anti-money laundering package will apply from 10 July 2027, with the new EU Anti-Money Laundering Authority based in Frankfurt. Acquisitions of supervised institutions require owner control procedures. See our financial services page and our banking and finance practice.

Insurance and reinsurance

Insurers and reinsurers are supervised under the Insurance Supervision Act (VAG), which implements Solvency II, while the Insurance Contract Act (VVG) governs policies. Recent changes to Solvency II and the new Insurance Recovery and Resolution Directive affect capital, reporting and recovery planning. Coverage disputes, D&O claims, warranty and indemnity insurance in M&A and portfolio transfers and run-off transactions are key topics. See our insurance and reinsurance page.

Fintech and payments

Fintech business models often sit at the edge of several licensing regimes. A payment app may need a licence under the Payment Services Supervision Act (ZAG), a lending platform may trigger banking licence requirements, and a crypto service needs authorisation under MiCAR. Partnerships between banks and fintechs raise outsourcing and DORA questions, because the bank remains responsible for ICT risks at its service providers. Licensing analysis should come before product launch, because unlicensed business can be a criminal offence and BaFin can order it to be wound down.

Life sciences, healthcare, retail and consumer goods

Life sciences and healthcare

Pharmaceutical and medical device companies face regulation at every stage: clinical trials, marketing authorisation, pricing and reimbursement, advertising and compliance. The Medicinal Products Act (AMG) and EU pharmaceutical law govern medicines, the Medical Device Regulation and the In Vitro Diagnostic Regulation govern devices, and the AMNOG procedure determines reimbursement prices for new medicines. Digital health applications (DiGA) can be prescribed and reimbursed after listing by the Federal Institute for Drugs and Medical Devices, and the hospital reform is reshaping the hospital landscape and creating transaction opportunities. See our life sciences and healthcare page.

Retail and consumer goods

Retailers and consumer brands must comply with extensive consumer protection and unfair competition law. Online contracts must offer a cancellation button and, since 19 June 2026, an electronic withdrawal function. Environmental claims are subject to stricter rules since the EU Directive on empowering consumers for the green transition was implemented in the Act against Unfair Competition (UWG) with effect from 27 September 2026. The Packaging and Packaging Waste Regulation has applied since 12 August 2026, and food law, franchising and retail leases complete the picture. See our retail and consumer goods page.

Healthcare and consumer markets compared

Healthcare and consumer goods share a high level of regulatory scrutiny of advertising and product claims. Health-related advertising is restricted by the Therapeutic Products Advertising Act, food and cosmetic claims by EU regulations, and environmental claims by the amended UWG. In both sectors, enforcement comes from authorities and from competitors and associations, often through warning letters and preliminary injunctions. Marketing teams therefore need clear approval processes for claims, labels and influencer campaigns, and should keep the evidence that substantiates each claim. Product recalls and safety notifications are another shared risk, governed by the General Product Safety Regulation for consumer products and by sector rules for medicines and medical devices.

Cross-cutting trends across sectors

Several legal developments affect companies in all sectors in 2026:

• Sustainability and supply chains. The Omnibus I package (Directive (EU) 2026/470) narrowed the scope of the CSRD and the CSDDD; the German Supply Chain Due Diligence Act (LkSG) still applies to companies with at least 1,000 employees in Germany, while its reform is pending. See compliance, investigations and ESG.
• Investment screening and economic security. Acquisitions in sensitive sectors are screened under the Foreign Trade and Payments Ordinance, and a draft Investment Screening Act was published for consultation in October 2026. See foreign investment control.
• Digital regulation. Data Act, AI Act, NIS2 and the Cyber Resilience Act apply across industries, not only to technology companies.
• Restructuring. Industries under pressure use the StaRUG framework and self-administration proceedings; see restructuring and insolvency.
• Labour market. Works council elections in 2026, the Pay Transparency Directive and skilled immigration affect employers in every sector; see employment and pensions.

Transactions across sectors

M&A and investment activity in Germany increasingly turns on sector regulation. In energy, buyers need to understand grid connection rights, support entitlements and regulated revenues; in financial services and insurance, BaFin owner control procedures determine the timetable; in healthcare, licensing and reimbursement status drive value; in defence and critical infrastructure, investment screening and security requirements may require mitigation commitments. Regulatory due diligence should therefore be scoped by sector, not by a generic checklist, and transaction documents should allocate the risk of regulatory approvals and post-closing compliance. Our mergers and acquisitions page explains the general framework.

Disputes and enforcement across sectors

Regulatory enforcement is becoming more intensive. Authorities such as the Federal Cartel Office, BaFin, the Federal Network Agency and the data protection authorities use broader powers and higher fines, and EU authorities enforce the Digital Services Act and Digital Markets Act directly. Private enforcement adds to the pressure: competitors use unfair competition law, consumer associations bring redress actions, and cartel damages claims follow fines. Companies in regulated sectors need a strategy for regulatory investigations and parallel civil claims, including privilege and document management. See our disputes, litigation and arbitration practice.

How TRW & Co helps across sectors

We combine practice expertise in corporate, finance, restructuring, employment, tax, antitrust and trade, compliance, disputes, IP, data and digital, real estate and public law, energy and commercial law with an understanding of how these rules apply in each industry. For a transaction, a regulatory project or a dispute, we bring together the relevant practice areas and focus on the sector-specific issues that drive risk and value.

Our sector pages describe what we do for companies, investors and public bodies in each industry; our international clients pages explain how we support foreign investors entering Germany. Where a matter touches several sectors, such as an energy project for an industrial site or a technology acquisition by a financial investor, we coordinate the relevant teams so that the client receives one consistent analysis. To discuss a matter in your sector, please contact us. This page provides general information, not legal advice.