BGH Ruling on Drug Price Regulation: What Online Pharmacies Need to Know

The German Federal Court of Justice (BGH) has issued a landmark ruling that significantly reshapes the legal framework for pharmacies. The key question was whether online pharmacies based in other EU member states may offer German patients bonuses and discounts on prescription drugs – despite the strict price regulations in force in Germany.

Background of the Case

A Dutch online pharmacy had promised German customers bonus credits when redeeming prescriptions: three euros per medicine, up to nine euros per prescription. Additional benefits were also offered, such as rewards for participating in a medication check. The Bavarian Pharmacists’ Association considered this a violation of price regulations and unfair competition, and took legal action.

While the Higher Regional Court of Munich initially ruled in favor of the association, the BGH overturned that decision. It clarified that German price-binding rules cannot automatically be applied to pharmacies operating from another EU member state.

Core Findings of the BGH

The ruling is based on the principle of the free movement of goods within the European Union. Restrictions on cross-border trade are only permissible if they are demonstrably necessary to protect overriding public interests – for example, ensuring reliable access to medicines or safeguarding public health.

In this case, however, the court found no sufficient evidence that bonus programs of foreign online pharmacies would endanger healthcare provision or the safety of patients. As a result, EU law prevails over German price-fixing rules.

Consequences for German Pharmacies

Pharmacies operating in Germany remain strictly bound by national price regulations. This means they cannot sell prescription drugs at a lower price, nor may they provide gifts or incentives – not even small items such as sweets or tissues.

The effect is a clear competitive disadvantage: while foreign EU pharmacies may use discounts and bonuses as marketing tools, German pharmacies remain tightly restricted.

Practical Implications

• EU-based online pharmacies gain more flexibility in attracting and retaining customers through bonus schemes.
• German pharmacies remain legally constrained and face competitive disadvantages.
• Competition law disputes will increasingly involve the question of how far national regulations are compatible with EU law.

Conclusion

The BGH ruling underlines how strongly EU law impacts national regulations, even in sensitive sectors such as pharmaceutical supply. For German pharmacies, the regulatory environment remains restrictive, while foreign competitors enjoy wider commercial opportunities.

If you operate a pharmacy, run an online distribution model, or want to know what legal options exist regarding bonus programs, discounts, or competition law issues, tailored legal advice can provide the clarity and security you need.