Are the new Commercial Courts in Germany an alternative to arbitration?

In the latest edition of the German law journal Betriebs-Berater (36/2026), Prof. Dr. Siegfried H. Elsing takes a closer look at Germany's newly established Commercial Courts and what they mean for the future of arbitration.

Following new legislation that took effect on April 1, 2025, specialized senates at the Higher Regional Courts now offer an alternative forum for complex commercial cases — particularly post-M&A disputes — that have traditionally been resolved through arbitration.

The article weighs the practical considerations for parties choosing between the two mechanisms, including procedural efficiency, cost predictability, enforceability, confidentiality, the ability to select decision-makers, and the role of English-language proceedings.

While both systems have distinct strengths and ultimately benefit the dispute resolution landscape in Germany, arbitration will continue to play the dominant role particularly in cross-border disputes.

Articles from Betriebs-Berater are reprinted with permission.