Bundesprüfstelle, the German media censorship body is critizised in Germany, and they have a track record with video games not just since Erfurt but actually since very early on, maybe the 80s (you can find more on Wikipedia I guess).
What has to be noted though is that in Western Countries most censorhip is self censorship. Media publishers refrain from publishing controversial material because they fear not just sanctions by the government but also the public opinion.
So was Gears of War actually forbidden in Germany? Nope. MS retracted it after the USK (an industry organisation, similar to the ESRB in the US) denied to rate it, which would have meant very limited sales. The government had no direct part in it.