Austrian OGH on Digital Parking Enforcement
The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) has reviewed the operational framework of digital parking enforcement, in which service providers employ automated number plate recognition technology to oversee parking areas and enforce contractual penalties on users who commit violations.
The defendants in the case at hand manage the parking facilities pursuant to agreements with the property owners, which assign them specific responsibilities for enforcement, monitoring, and issuing reminders regarding parking regulations. They do not receive compensation for these services. Instead, their compensation model stipulates that contractual penalties arising from violations of parking rules are collected by the defendants and retained by them.
The commercial enforcement of such claims against third parties—particularly via demand and reminder letters—typically falls under the remit of professional legal practitioners and is exclusively reserved for lawyers in accordance with Section 8 of the Austrian Lawyers' Act (Rechtsanwaltsordnung, RAO). Given that the defendants lack both the requisite commercial authorization (such as registration as a debt collection agency) and qualifications for legal representation, the OGH has determined this constitutes an infringement of the legal profession’s exclusive mandate to act on behalf of clients.
The defendants contend that they are advancing their own claims rather than those of third parties. As outlined in the terms and conditions posted at the car park entrances, a contractual agreement is established between the user and the defendants upon entry. Should the allotted parking time be exceeded or any other violations occur, the user becomes responsible for paying a contractual penalty as stipulated by this relationship.
The OGH noted that the arrangement with the authorised owners of the parking spaces does not confer an independent right of use upon the defendant. The allowed duration for parking and the contractual penalty are established in coordination with the authorised owners, whereas key operational responsibilities—such as ensuring traffic safety and maintaining insurance coverage—continue to reside with the authorised owners.
According to the court, the business model unlawfully seeks to take action against individuals who violate parking regulations by interfering with the property or possession of authorized users of the parking spaces, and to pursue related claims outside of the judicial process. The OGH views the creation of a separate contractual relationship with car park users and the enforcement of a contractual penalty as ultimately serving to uphold these claims.
OGH cases 4 Ob 168/25x, 4 Ob 171/25p and 4 Ob 174/25d (28 January 2026)