Arbitration in Corporate Disputes Involving Consumers: An Analysis of Austria’s Current Arbitration Law and Recent Law Proposal, 2025

While shareholder disputes are generally arbitrable under Austrian law, this is currently severely limited by Section 617 of the Austrian Code of Civil Procedure (“ACCP”). The existing provision, Sec 617 ACCP stipulates a very high threshold as to the validity of arbitration clauses concerning consumers. These restrictions—without exception—also apply to shareholders if they are considered consumers under Austrian law (“Consumer-Shareholders”). The broad definition of “consumer” has, in practice, rendered arbitration with a seat in Austria in the area of corporate law nearly impossible. As one scholar has succinctly put it, arbitration involving shareholder disputes is “practically dead” when a Shareholder-Consumer is involved.

To address this issue, a recent law proposal, identified as 3826/A (“Draft Legislation”), has been under discussion in Austrian arbitration law. This paper aims to analyze how the Draft Legislation seeks to resolve the challenges posed by the current legal framework.

The Draft Legislation also includes an amendment concerning the special power of attorney required for the conclusion of arbitration clauses. This issue—while significant for the validity of arbitration clauses under Austrian law—is not the primary focus of this paper.