Seizure of money at online pharmacy DocMorris in the Netherlands
In the dispute over advertising and discounts, German pharmacists have achieved success against their online competitors.
Quick Look
- DocMorris has suffered a setback in the ongoing dispute with traditional pharmacists.
- German pharmacists successfully secured the seizure of funds in the Netherlands for previous court violations.
- DocMorris has appealed.
AI-generated summary
Why It Matters
DocMorris and German pharmacists have been arguing for years about advertising, discounts and compliance with German competition rules by mail order pharmacies from other EU countries.
The online competitor DocMorris has suffered a setback in the ongoing clinch with long-established pharmacists.
As it became known according to reports in the “Pharmazeutische Zeitung” (PZ) and other media, DocMorris' money has now been seized in the Netherlands at the urging of the North Rhine Chamber of Pharmacists.
Years ago, DocMorris had lost court cases in Stuttgart that were about the way advertising was used, including discounts. Despite the court defeats, DocMorris continued, according to the plaintiffs, whereupon the plaintiffs applied for administrative fines in Germany - but that came to nothing. The German pharmacists then took legal action in the Netherlands to get the goods seized there. In the first instance, the German pharmacists were successful.
No giving in at DocMorris
When asked, DocMorris said it was “merely a matter of enforcing administrative fines amounting to a high five-digit to low six-digit euro amount.” The isolated legal dispute from 2020 has no strategic relevance. “This has no impact on DocMorris’ operations or financial stability.” Nevertheless, the decision was made to file an appeal in order to have the legal situation in this matter finally clarified.
Although DocMorris is located not far from Aachen, just over the border on the Dutch side, the company does most of its business in Germany. The company benefits from the internal market, which enables cross-border trade without disadvantages for a foreign company. As a corporation that sells medicines, DocMorris is not allowed to have its headquarters in Germany; this business is reserved for pharmacists in this country.
The emerging online competitor is a thorn in the side of long-established pharmacists who have to cover costs for their on-site pharmacies. They complain about different competitive conditions and warn of damage to local supply if stationary pharmacies suffer losses due to online competition. DocMorris, in turn, argues that a provider from another EU country should not be disadvantaged in violation of European law.
What to Watch
AI outlook — possibilities, not facts
DocMorris is appealing the garnishment decision.
Very likely · Within months
Open Questions
- How will the Court of Appeal in the Netherlands decide?
- What exact amount was seized?
