Skip to content

Reduced Costs for Overseas Online Pharmacies Initiated by BGH

Mail-order pharmacies based in different EU countries are exempt from the previous price-fixing regulation on pharmaceuticals, according to the ruling of the Federal Supreme Court.

Government to Lower Costs for International Online Pharmacies
Government to Lower Costs for International Online Pharmacies

Reduced Costs for Overseas Online Pharmacies Initiated by BGH

In a landmark decision, the Federal Court of Justice (BGH) in Karlsruhe has ruled that a specific practice by a Dutch mail-order pharmacy offering bonus payments for dispensing prescription drugs is not deemed unfair. This ruling, announced on Thursday, does not apply to mail-order pharmacies established within Germany or in another EU member state.

The ruling follows a previous decision by the European Court of Justice (ECJ) that fixed prices for prescription drugs violate EU law, as they can restrict competition. The BGH's decision reinforces the ECJ’s stance that advertising discounts and bonuses does not infringe EU law, providing clarity and establishing a consistent regulatory framework across the EU.

The ruling has significant implications for drug pricing and competition in the pharmaceutical sector. By allowing mail-order pharmacies to offer discounts, the ruling promotes competition in the market. This can lead to lower prices for consumers, as pharmacies may use discounts as a competitive strategy to attract customers.

The ability to offer bonuses directly benefits consumers by reducing their healthcare expenses. For instance, DocMorris, a mail-order pharmacy, is now offering financial bonuses to customers, which can help mitigate rising co-payments.

It is essential to note that the ruling does not address the impact of bonus payments on the overall cost of prescription drugs in Germany. Nor does it address the issue of drug price fixing regulations in mail-order pharmacies within the EU member state where the Dutch pharmacy is established.

In summary, the BGH's ruling enhances the competitive landscape for mail-order pharmacies, potentially leading to more affordable prescription drugs for consumers. The decision underscores the importance of maintaining a competitive market in the pharmaceutical sector, ultimately benefiting consumers across the EU.

In the context of the BGH's ruling, it is anticipated that the competitive landscape in the retail sector, specifically for mail-order pharmacies, will undergo change, fostering a more cost-effective finance environment for prescription drugs. This decision aligns with the European Court of Justice's (ECJ) stance on advertising discounts and bonuses, signifying a unified approach to regulation within the EU business scene.

Read also:

    Latest