Baden-Wurttemberg closed early. Several smaller town markets canceled on their own because the logistics of testing and/or checking vaccine status was too much for a small market. But the big ones in Frankfurt, Berlin, Cologne, etc. moved forward and didn't seem much different than years past other than masks were required in the main market squares.
My bet would be if the German gov't tried to close markets again in 2022, there would be a revolt. That's part of why so many states moved forward this year, in spite of climbing COVID numbers.