The proposed surge in German identity card fees is triggering alarm among consumer advocates and small business owners, who warn of disproportionate burdens and skewed market competition. Stefan Genth, CEO of the German Retail Federation (HDE), has sharply criticized the government’s plan to raise identity card costs by approximately 24%, pushing the price to €46.
Genth argues the increase is unjustified by actual cost increases and represents an unfair imposition on citizens. “This is simply unfair” he stated, emphasizing that the policy risks jeopardizing fair competition and potentially leading to job losses. He pointed out the move appears designed to indirectly subsidize the Federal Printing Office’s investment in automated photo booths, a trend mandated by law beginning May 1, 2025. From that date, applications will only accept digital biometric photographs, rendering traditional paper photos obsolete.
The current legislation is intended to allow citizens the freedom to choose where they obtain their identification photo, whether from private providers like photography shops or pharmacies, or directly from government offices. However, Genth contends that the proposed fee increase effectively forces citizens to subsidize the Federal Printing Office’s infrastructure, regardless of their choice of photographer. “Those who intentionally select a private provider for superior quality are being indirectly forced to pay for the Federal Printing Office’s equipment” he explained.
Going further, Genth labelled the strategy as a “hidden subsidy” accusing the government of creating an artificial competitive advantage that will disadvantage private businesses. He highlighted the potential impact on the over 1,000 photography shops across Germany, warning of their possible marginalization. “This isn’t how competition functions in a social market economy” he asserted.
The HDE is demanding a clear separation of costs, arguing that identity card fees should only reflect the actual production costs of the document, not the expense of operating automated photo booths. The organization proposes a separate, transparent fee specifically for those utilizing the Federal Printing Office’s automated services, calculated based on real operational costs, aligning with the original intent of the law. “The State must not create a privileged position for itself” Genth concluded, emphasizing the need for equitable practice and maintaining a level playing field for private enterprises.
