A recent ruling by the German Federal Court of Justice (BGH) has significantly altered the landscape of pharmaceutical pricing and cross-border commerce within the European Union. The court determined that previous regulations concerning drug price controls do not apply to mail-order pharmacies based in other EU member states.
The decision stems from a lawsuit filed by a Bavarian pharmacy association against a Dutch pharmaceutical company. The association had alleged that the company engaged in unfair practices by re-importing prescription medications into Germany between 2012 and 2013 and subsequently offering incentives to patients who redeemed their prescriptions. This practice was challenged as a violation of the German drug price control system, prompting a request for an injunction and reimbursement of legal costs.
Lower courts, including the Regional Court and Higher Regional Court of Munich, initially ruled in favor of the pharmacy association. However, the Federal Court of Justice overturned these decisions. The court reasoned that the former drug price control regulation constituted a restriction on the free movement of goods within the EU and, therefore, could not be applied to the Dutch mail-order pharmacy.
The Karlsruhe-based judges stated that no evidence was presented demonstrating that the absence of drug price controls would jeopardize the secure and comprehensive supply of essential medicines, nor would it pose a risk to public health. The ruling, delivered on July 17, 2025 (I ZR 74/24), marks a departure from previous interpretations and is expected to have broader implications for the operation of cross-border pharmaceutical services within the EU.
