Monthly Dose of Germany: March 2025

Cross-jurisdictional data protection, cybersecurity and AI overview – third edition

Recent updates and upcoming developments

In today's digital economy, data is king. Yet, harnessing its power requires navigating a complex and evolving legal landscape. This guide provides a comprehensive overview of recent developments and future trends in data protection, cybersecurity, and artificial intelligence across 51 jurisdictions.

This guide serves as a valuable resource for businesses seeking an international overview of:

• Recent developments: the most significant recent laws, regulations, guidelines, decisions, and sanctions in data protection, cybersecurity, and AI; and
• Future trends: potential upcoming developments in these fields over the coming months.
  

New thresholds for company size classes under German commercial law

Increase of the thresholds “balance sheet total” and “revenues” for company size classes in the German Commercial Code

On 17/04/2024, the second act amending the DWD act and amending German commercial law provisions (“Zweite Gesetz zur Änderung des DWD-Gesetzes sowie zur Änderung handelsrechtlicher Vorschriften”) became effective. This act has raised the thresholds “balance sheet total” and “revenues” for determining company size classes in the German Commercial Code (“HGB”). This increase leads to a reduction in reporting requirements, and in some cases to an exemption from the statutory audit obligation, in particular for companies (corporations) which are now classified in a smaller size class as a result of the reclassification.

Payment Services in eMobility

In the field of electromobility, industry-specific issues like range anxiety and charging infrastructure networking have been widely discussed. However, recently, players are facing challenges in payment processing and related processes. The fragmented European market requires mobility service providers to establish numerous technical connections, leading to complex billing relationships. Financial regulation complexities arise as parties strive to streamline processes. The whitepaper delves into topics such as price calculation, VAT specifics, and the lack of specialized payment solutions in the electromobility market, addressing issues like money remittance, charging service outsourcing, and the limited range exclusion in eMobility.

From vision to value

Generative AI presents a significant opportunity for businesses seeking to innovate and enhance efficiency. However, scaling its deployment requires careful consideration of the legal, ethical, and regulatory landscape to mitigate risks and ensure responsible implementation.

From a strategic perspective, C-suite leaders will need to think differently about:

• Governance
• Leadership 
• Technology infrastructure 
• Talent management 
• Data management and protection 
• Ethics and compliance
  

Anti-Money Laundering Compliance | The EU Anti-Money Laundering (AML) package - Part 1

EU-wide unified anti-money laundering and transparency requirements lead to a comprehensive expansion of the obligations of German and foreign companies to notify their beneficial owners to the German transparency register (Transparenzregister).

In this first part of the series of articles, an overview of the new EU-AMLR is provided before going into more detail on selected key elements of the numerous new regulations in the following articles.

Anti-Money Laundering Compliance | The EU Anti-Money Laundering (AML) package - Part 2

The expansion of the scope of companies subject to notification obligations to the transparency register

This second part of the series of articles is dedicated to a key element of the new EU-AMLR, namely the expansion of the scope of companies subject to notification obligations to the transparency register. It explains the current legal situation in Germany and looks at the future EU-wide legal situation.

Anti-Money Laundering Compliance | The EU Anti-Money Laundering (AML) package - Part 3

The EU-wide unified system for the determination of beneficial owners

This third part of the series of articles is dedicated to further key elements of the new EU-AMLR, namely the EU-wide unified system for the determination respectively identification of beneficial owners and new criteria for the notification of so-called “fictitious beneficial owners”. 

Monthly Dose Employment Law: 02/2025 - Selected current judgements

The second edition of our Monthly Dose Employment Law in 2025 on current case law explains the judgments of

1. the German Federal Labor Court (Bundesarbeitsgericht, BAG) on the remuneration of rest breaks by allocation at the employer’s reasonable discretion,
   
   
2. the BAG on the required minimum difference between non-tariff remuneration and the highest tariff remuneration,
   
   
3. the Regional Labor Court (Landesarbeitsgericht, LAG) of Berlin-Brandenburg on the reclaiming of continued remuneration in case of doubtful incapacity for work,
   
   
4. the LAG Lower Saxony on grossly negligent violation of safety instructions as an extraordinary reason for termination and (un)reasonable continued employment, as well as
   
   
5. the LAG Cologne on the necessity of carrying out a prevention procedure pursuant to Section 167 (1) of the Ninth German Social Code (SGB IX) also during the probationary period.

Transaction News

We at Deloitte Legal Germany are constantly advising on numerous complex transactions and challenging projects.

We would be delighted to explain our services portfolio to you and discuss with you how we at Deloitte Legal Germany can assist you with your projects, whether in the field of Corporate Reorganizations, M&A transactions, including carve-outs, general commercial, employment law, IT/IP or LMC/LMS. Just reach out to us!

In order for you to better understand how we have helped other clients, we would like to hereinafter showcase information on two projects that our teams have recently advised on.

Deloitte Legal advises SICK on strategic partnership with Endress+Hauser with implications for 42 jurisdictions 
An international Deloitte Legal team led by Michael K. Schneider has advised SICK, an international provider of sensor-based automation solutions headquartered in Germany, on the implementation of a strategic partnership with the Swiss measurement technology specialist Endress+Hauser. With this partnership, the two companies involved are joining forces in the field of process automation in order to provide their customers with even better support and to drive forward new technological solutions for the decarbonisation of the process industry.

Read more

Deloitte Legal advises Main Capital Partners portfolio company Fortes on the acquisition of German PSA software company QuoTec 
A Deloitte Legal team led by Max Lüerßen and Felix Felleisen has advised Fortes, a portfolio company of Main Capital Partners (“Main”), on the acquisition of QuoTec GmbH. This transaction marks Fortes' third acquisition since Main’s investment in 2021 and represents a significant milestone in the company’s European growth strategy. QuoTec’s CEO and former owner Isa Said will continue to support the business moving forward. 

Read more

Deloitte Legal Webcast Series

In our German language Deloitte Legal Update webcast series, we address current legal issues and developments that are important for corporate practice.

In our upcoming "Legal Update" webcast we will discuss:

Deloitte Legal Webcast "Legal Update #05/2025 - Automation of business processes through AI Agents – How to deal with legal challenges 

Wednesday, 02 April 2025 | 11:00 - 11:45 a.m.
Register here (Webcast in German language)

The webcast aims to enlighten participants on leveraging autonomous AI agents to enhance operational efficiency within their organizations. It emphasizes the importance of addressing both technical and legal considerations when implementing AI technologies. Specifically, it covers topics such as how AI agents function, legal challenges associated with AI adoption, the impact of the EU AI Act on regulation, data protection requirements, liability issues, and best practices for establishing effective AI Governance structures.

The speakers for the webcast are esteemed experts in the field: Dr. Till Contzen (Deloitte Legal), Nikola A. F. Werry (Deloitte Legal) and Dr. Björn Bringmann (Deloitte AI Institute). Following the presentations, attendees will have the opportunity to engage with the speakers during a detailed Q&A session.

You can download the presentations of our recent webcasts here:

• Legal Update #04/2025 - Employer of Record & Co. within and out-side the group: worldwide operations which are safe and secure under employment and tax law In this webcast, attendees were educated on the importance of carefully organizing staff deployment to avoid labor and tax issues, whether working with employees or service providers. Key considerations included complying with labor and tax regulations, particularly the German Temporary Employment Act, in cross-border personnel deployment. Challenges included navigating changes in regulations and identifying risks related to hiring third-party personnel abroad. The risk of double taxation and administrative burdens in international staff deployment were also highlighted, emphasizing the necessity of compliance to avoid fines and reputational damage. The webcast covered topics such as the "employer of record" concept, cross-border reporting lines, and compliance management from both employment law and tax perspectives. Our experts Rafael Hertz (Director, Deloitte Legal, Employment & Pensions), Julia Zanon (Manager, Deloitte, Business Tax & International Tax) and Tobias Kruse (Senior Manager, Deloitte, Business Tax & International Tax) provided insights and facilitated discussions on these critical issues for the practice of cross-border personnel deployment.
  
• Legal Update #03/2025 - Markets in Crypto-Assets Regulation (MiCAR) | How can banks, FinTechs, financial institutions and payment service providers benefit from this? The Markets in Crypto Assets Regulation (MiCAR) Regulation (EU) 2023/1114 was implemented in Europe from December 30, 2024, establishing a standardized legal framework for crypto-assets across the EU. MiCAR has significant implications for banks, financial service providers, fintechs, and payment service providers, providing legal certainty, market access, a competitive advantage for early adopters, and improves integration of crypto with traditional financial systems. It also promotes market acceptance, facilitates user-friendly innovations, and creates new business opportunities in the crypto sector. This webcast hosted by blockchain experts Alireza Siadat (Deloitte Legal) and Jens Hermann Paulsen (Deloitte) discussed MiCAR, providing insights into regulatory content, license requirements, and the benefits of compliance with the new legal framework.

In our Webcast Archive, you can find a list of previous webcasts and also download the corresponding presentations.

Should you be interested in topics discussed during one of our German language webcasts, do not hesitate to contact the respective presenters – they will be delighted to provide you with additional information in the English language.