Court upholds price fixing for prescription drugs, barring discounts
Germany's Federal Court of Justice (BGH) confirmed on July 17, 2025, a 2016 European Court of Justice (ECJ) ruling on price fixing for prescription medicines. The decision limits the scope of discounts and bonuses in pharmaceutical supply.
Berlin – Germany's Federal Court of Justice (BGH) ruled on July 17, 2025, upholding a 2016 European Court of Justice (ECJ) decision that reinforced price controls on prescription drugs. The ruling effectively prevents the use of bonus programs and discounts in the sale of these medications.
The BGH considered a case involving bonus payments offered by a Dutch mail-order pharmacy for prescription drugs. The Bavarian Pharmacists Association (BAV) had argued that these bonuses constituted direct price reductions, violating Germany's fixed drug pricing laws. Munich's Higher Regional Court (OLG) had previously deemed such practices anti-competitive.
ABDA, the Federal Association of German Pharmacists' Associations, stated that while the full written decision is pending review, the so-called "social law price fixing" introduced by the "Act to Strengthen Local Pharmacies" remains in effect as established in the German Social Code V. Thomas Preis, President of ABDA, emphasized that "medicines are not simple commodities, but products requiring extensive consultation with significant risk profiles – discounts and bonuses do not belong in medicine and healthcare."
ABDA indicated that if the price fixing for prescription drugs is further challenged, political actors would need to work with the association to develop solutions. The ruling is expected to reinforce the role of local pharmacies in ensuring consistent access to medication across Germany.