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Cross-border online pharmaceutical sales and the question of whether price binding regulations are still in effect

On July 17, 2025, the German Federal Court of Justice (BGH) handed down an influential verdict (I ZR 74/24) in a case affecting the regulatory landscape of drug prices for online pharmacies within the European Union (EU). This ruling differed significantly from earlier judgments, indicating...

Cross-border online pharmaceutical sales and pricing regulations: Do binding price controls not...
Cross-border online pharmaceutical sales and pricing regulations: Do binding price controls not apply?

Cross-border online pharmaceutical sales and the question of whether price binding regulations are still in effect

In a landmark decision, the German Federal Court of Justice (BGH) has confirmed the admissibility of prescription bonuses for pharmaceutical sales, including by online pharmacies. This ruling effectively overturns a previous ban that had prohibited such bonuses under German pharmaceutical price setting and pharmacy remuneration regulations.

The BGH's decision rejects the argument that prescription bonuses distort the pharmaceutical market or threaten the health system or nationwide drug supply. The Court emphasised that no evidence proved that pricing restrictions, including banning such bonuses, were necessary to protect public health or access to medicines.

This judgment aligns with the European Court of Justice’s stance, reinforcing a harmonized EU-wide approach to pharmaceutical price regulation, particularly impacting online pharmacies operating across borders. It signals a shift towards more liberalized price competition in the pharmaceutical sector in Germany and potentially throughout the EU, which may encourage further development of online pharmaceutical services.

The ruling supports the continued operation and growth of online pharmacies by allowing them to offer prescription bonuses, which can enhance competition and potentially lower costs for consumers. It was underlined that online pharmacies contribute significantly to ensuring the nationwide supply of medicines, contradicting prior assumptions that they harm the pharmacy network.

The future implications of this ruling are far-reaching. It may prompt reassessment of German and EU regulations to avoid conflicts with EU law and ensure that legal frameworks support both competition and healthcare supply security. The decision could facilitate expanded consumer benefits through prescription bonuses and discounts, driving price transparency and competitive pricing strategies among pharmacies, including online providers.

However, the full extent and implications for the pharmaceutical industry are not yet fully understood due to the ruling only addressing the outdated legal norm and the full written judgment not yet being published. The BGH's ruling implies a significant divergence from previous judgments, potentially having a profound impact on the pharmaceutical industry.

The case centres around German price binding regulations and a Dutch online pharmacy offering bonuses for prescriptions. The BGH did not find empirical data on the effects of standardized pharmacy prices on the nationwide, safe, and high-quality supply of medicinal products in the case at hand. The court's ruling was based on Section 78 paragraph 1 sentenced 4 AMG (old version) of German law, which regulated the pricing for prescription medication to protect patients from price overshooting.

The ruling has already sparked reactions within the industry. The defendant has announced plans to resume offering bonuses in response to the judgment, but the implications for the pharmaceutical industry are not fully foreseeable. The full written reasons for the judgment are awaited to provide a comprehensive assessment of its implications for the pharmaceutical industry.

References: [1] Luisa Jakobs, "BGH Urteil: Zulässigkeit von Rezeptprämien für Apotheken im Internet," IUR-Netz, 17. Juli 2025,

Scientists and health experts may need to conduct studies on the impact of prescription bonuses on medical-conditions and overall health-and-wellness, considering the BGH's decision to allow such incentives in pharmaceutical sales, particularly by online pharmacies. This development could potentially lead to changes in the pharmaceutical market, with increased price competition and lower costs for consumers, while ensuring a secure nationwide drug supply.

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