Pharmacy Showdown in Germany: BGH Weighs in on Mail-Order Discount Offers
Pharmacy Dispute Addresses Promotional Offers Given When Purchasing Medications via BGH - Pharmacy dispute resolution leads to medicine price reduction: BGH strikes agreement
Ready for some legal drama? The German Federal Court of Justice, BGH, is now entangled in a heated dispute between local pharmacies and mail-order pharmacies over discount offers on prescription medicines. Here's the lowdown on the court battle and its potential implications.
In the middle of this fray is a Dutch company that provides prescription medicines, primarily from German pharmaceutical wholesalers, to customers in Germany. With a three-euro bonus per medicine and rewards of up to nine euros for filling out forms or answering phone questions, the company offers a substantial discount.
But the pharmacists' association sees this as a slap in the face. They argue that the company's tactics are anti-competitive, a claim that the BGH must now decide whether it was correct. The Munich Higher Regional Court had ruled in favor of the association, expressing concerns over potential pharmacy closures and supply chain disruptions.
As the BGH ponders over the case, it appears that the reasoning and information provided by the Higher Regional Court and the Federal Government may not have been enough, and they could have benefited from more substantial statistical data.
One question hanging in the balance is whether the court applied the right standards. Curious to know what those standards are? We'll keep you posted as more information becomes available.
This court battle isn't just about a one-time dispute but revolves around the old-school pricing system for prescription medicines. Since the end of 2020, the same price has been assigned everywhere - in local pharmacies and mail-order pharmacies, but the caveat is that this rule only applies to those with statutory health insurance.
So, even if the BGH rules in favor of the mail-order pharmacies, it might not settle the dispute between them and local pharmacies forever.
The Big Players
- Federal Court of Justice (BGH)
- Mail-Order Pharmacies
- Local Pharmacies
- Germany
- Dutch Company
- Pharmacists' Association
- Prescription Medicines
Key Regulatory Changes and Challenges
- Cash Discounts: A potential change on the horizon could be the reinstatement of up to 3% cash discounts for prescription medicines. This shift in market dynamics may favor manufacturers selling directly to pharmacies over wholesalers, but we'll let you know once the dust settles.
- Competition in Mail-Order Pharmacies: The scrapping of several regulations, such as the ban on prescription brokering and third-party ownership of pharmacies, could potentially reshape the mail-order pharmacy sector.
- Regulatory Harmonization: Future plans involve harmonizing regulations for local and mail-order pharmacies, focusing on aspects like cool chain logistics and documentation. This could potentially lead to stricter regulations for mail-order pharmacies, but until we hear more, we're left guessing.
- Legal Challenges: Other legal challenges and rulings, such as cease-and-desist letters issued to online distributors, may impact the operations of mail-order pharmacies. Stay tuned for updates!
- The debate between local pharmacies and mail-order pharmacies in Germany over discount offers on prescription medicines has reached the Federal Court of Justice (BGH), with the BGH now tasked with determining whether the tactics of a Dutch company offering substantial discounts are anti-competitive.
- The pharmacists' association, noticing the discounts offered by the Dutch company, argue that these tactics are detrimental to their industry, potentially leading to pharmacy closures and supply chain disruptions.
- The German Federal Government may have provided insufficient reasoning and information to the BGH, making the court consider whether the appropriate standards were applied in the case.
- The court battle isn't just about a one-time dispute but revolves around the old-school pricing system for prescription medicines, with the same price assigned everywhere - in local pharmacies and mail-order pharmacies, but only for those with statutory health insurance.
- Regulatory changes in the health-and-wellness and finance industries could impact the mail-order pharmacy sector, including the potential reinstatement of up to 3% cash discounts for prescription medicines and the scrapping of bans on prescription brokering and third-party ownership of pharmacies.
- Future plans include harmonizing regulations for local and mail-order pharmacies, potentially leading to stricter regulations for mail-order pharmacies, and other legal challenges could affect their operations, such as cease-and-desist letters issued to online distributors.
