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Germany has recently gone through a fundamental process of reform of its higher education system. The last 15 years have been characterised by significant changes in virtually all aspects of the system. The impacts of the Bologna Process have been far reaching. The reform of the governance and funding systems in higher education has also been highly influential. This article reflects upon the increasing relevance of the concept of competition in higher education and how the realisation of more competitive elements was accomplished in a highly decentralised system of governance. The article also demonstrates the complex interplay between the public discourse regarding the need for more competitive approaches in higher education, legal reforms, changes in funding provisions for higher education and the transformation of rules for attracting human resources. [ABSTRACT FROM AUTHOR]