Germany has seen two dictatorships in the last century. The first one was more brutal, but the second one maintained a gigantic spying apparatus on its citizens, that took a large fraction of the state's budget.

If you contrast it with the US, you'll find some technologies earlier in use in Germany, like texting, and some stuff that just went different (credit vs. debit cards). And talk to someone from the US or even the UK about mandatory ID cards, and you'll hear different things about privacy.

I think this specifically is mostly to blame on bureaucracy and the federal system, not a reflection of general German luddism. Nobody really wants fax machines.