The proposal includes online searches of private computers and telecom data.
In spite of the few scuffles between police and radical left groups the demonstration with about 8,000 protestors, was peaceful.
The demonstration started at the Berlin landmark, Brandenberg Gate and went through the center of Berlin. The demonstration went under the title "Stop the surveillance madness."
According to organizers, it was called by 50 different groups and German opposition parties.
"I don't think people are ready to give up their personal freedom," one protestor said. "The demonstration shows it."