Yes, absolutely. Since there are cell phones in Germany, there are 2 year contracts. Phones are usually heavily subsidized (except the one we're talking about, hehe) and with the 2 year contract they get the subsidized money "back". You always need to sign the contract before you get the device. Now I was expecting an exception to this with the iPhone but it doesn't appear to be one.
I don't care all that much, since I live in Chicago now, have my iPhone already for a while and activated it at home.
Torsten