Safeguarding Prescription Drug Price Controls Amid European Legal Challenges

Thu 13th Nov, 2025

Efforts to protect fixed pricing for prescription medicines in Germany face increasing scrutiny from both national and European legal bodies. Recent discussions within the pharmaceutical sector have focused on the legal and regulatory frameworks that govern drug pricing and advertising, highlighting the complexities and potential vulnerabilities in the current system.

At a recent assembly of the Westphalia-Lippe Pharmacists' Association, legal experts and industry representatives analyzed ongoing legal developments affecting pharmaceutical price controls. A central point of discussion was the regulation of advertising for medicines, as stipulated under Section 7 of the German Drug Advertising Act (Heilmittelwerbegesetz, HWG). This legislation, known for its detailed exceptions and counter-exceptions, outlines the circumstances under which pharmaceutical advertising is permitted or prohibited in Germany.

Legal specialists emphasized that recent decisions by Germany's Federal Court of Justice (BGH) have illustrated a trend where advertising law is increasingly used to address issues arising from cross-border pharmaceutical sales, particularly by online pharmacies based elsewhere in the European Union. While EU-based mail-order pharmacies are not subject to German price controls, advertising restrictions remain a tool for German authorities to mitigate the impact of foreign providers' promotional campaigns.

Further complicating the landscape, Section 129 of the Social Code Book V (SGB V) now contains the prohibition on bonuses for prescription drugs, which was previously regulated under the German Medicines Act. Although social legislation is generally less susceptible to direct intervention by EU law, past European Court of Justice rulings--invoking the principle of free movement of goods--have previously overturned German price fixing on medicines. Legal analysts anticipate that these provisions may soon face intensified legal challenges at the European level, necessitating robust justification for the continued existence of price controls.

Industry leaders have highlighted the need for comprehensive data and evidence to defend the necessity of fixed prescription drug prices, particularly in ensuring consistent and equitable access to medicines nationwide. The pharmacist community is being urged to collaborate in collecting and presenting information that clearly demonstrates how price controls contribute to the stability and reliability of pharmaceutical care across all regions of Germany.

Concerns have also been raised regarding the potential consequences of dissolving these pricing regulations. Stakeholders argue that the removal of fixed pricing could undermine the financial viability of local pharmacies, reducing access to essential medicines, especially in rural or underserved areas. This could have significant implications for public health and the sustainability of the national pharmacy network.

In addition to defending price controls, the sector is also advocating for adjustments to remuneration and for the withdrawal of proposals that would alter the representation of pharmaceutical technical assistants (PTAs). These measures are seen as essential to maintaining service quality and professional standards within the pharmacy sector.

As legal challenges intensify and EU regulations continue to evolve, the pharmaceutical sector in Germany is preparing to present a well-documented case to courts and policymakers. The ongoing debate underscores the importance of balancing market freedoms within the European Union with the need to maintain a robust, equitable, and accessible healthcare system at the national level.


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