Germany is not actually technophobic. As a country, we are looking back to a long tradition of embracing technology and innovation. A lot of the German technophobia you are seeing today has been created by German newspapers, notably the Springerpresse.
And they have their reasons. Reported by the Financial Times:
[Google and Facebook] hold on online spending has created a digital duopoly that is upending the advertising business. In 2015 they accounted for 75 per cent of all new online ad spending, according to Mary Meeker of Kleiner Perkins Caufield & Byers, the US venture capital fund. Several analysts estimate that excluding Google and Facebook, the digital ad industry actually shrank in the first half of 2016.
The root cause for German Internet policy stances, current law and the general hysteria versus all things Google, Facebook/WhatsApp, Apple, Ebay and Microsoft in the end come down to that single observation above. From that root comes the defensive position of German Springerpresse, and from their influence on German politics comes the current policy.
Understanding that is the key to successful influence on German politics.