Yes, German universities don't do entrance exams, there is also no grading on a curve to artificially weed out students. What they do instead is just simply have really difficult exams with a failure rate of 30% and higher for first semester students. The linear algebra exam I passed had a 50% failure rate and most passing students got something equivalent to a D in the American system.

To be fair: if you're doing a Masters degree the grade you end up getting on your Bachelors degree is pretty unimportant and Masters usually isn't graded that harshly.

But yeah, we had exams with 70% failing.