ISIS attack in Germany killing at least eight people.
It was the third major act of violence against civilians in Western Europe in eight days. Previous attacks in France and Germany were claimed by the Islamic State militant group.
A police spokesman said there was no immediate indication that it was an Islamist attack but it was being treated as a terrorist incident.
A police spokesman said up to three gunmen were on the run after the initial shooting. The Bavarian capital was placed under a state of emergency as police hunted for them and special forces deployed in the city.
There was no immediate claim of responsibility but supporters of Islamic State celebrated on social media.
“The Islamic state is expanding in Europe,” read one Tweet.
Two witnesses told n-tv television that they saw a man dressed as Santa Claus walking away from the scene of the shooting with a crowd of people. One said the man had blonde hair, was not carrying a weapon but had a suitcase.
A video posted online, whose authenticity could not be confirmed, showed a man dressed in black outside a McDonalds by the roadside, drawing a handgun and shooting towards members of the public.
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