22
Sun, Dec
127 New Articles

Life Sciences Bulletin: CJEU Ruling on the Online Sale of OTC Medicines May Impact Hungarian Market

Hungary
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The recent judgement of the Court of Justice of the European Union (“CJEU”) on the sale of over-the-counter (OTC) medicinal products online (C-606/21, decision published on 29.02.2024) may have a direct impact on the existing Hungarian legislation and established market practice.

Case summary

The Union des Groupements de pharmaciens d’officine (UDGPO) challenged the legality of the services provided by Doctipharma, an online platform provider facilitating the sale of OTC medicines from pharmacy websites liked to its platform. The Union argued that by providing a service through its platform, Doctipharma was involved in the online sale of medicinal products and violated French legislation prohibiting the sale of medicinal products by unqualified persons.

The Court clarified that Doctipharma’s service constituted an “information society service” under EU law, connecting dispensing pharmacists and potential patients through the service of selling OTC medicines. 

The Court differentiated two scenarios:

  1. it concluded that a Member State can prohibit the provision of services, if a service provider lacking the pharmacist’s qualification, intends to sell OTC medicines on their own,
  2. it concluded that if the service provider merely facilitated connections between sellers and customers, without engaging in direct sales, Member States cannot prohibit the provision of services even if the service provider lacks the pharmacist’s qualification.

The Court finally concluded that Member States have the authority to regulate who can sell OTC medicines online but should also allow online sales through a third party that solely facilitates connections between sellers and customers.

Online sales in Hungary

In Hungary, only pharmacies are legally allowed to conduct online sales of OTC medicines, and are required to inform the Hungarian pharmaceutical authority of their website prior to commencing operations. 

Online platform providers can facilitate the sale of OTC medicines, but due to the recently tightened rules involving home delivery, they can only sell the aforementioned products; customers need to pick-up their orders at the pharmacy. In practice, this means that the sale of these products by online platform providers is rather limited, if it exists at all. Therefore, the question is whether the rules regarding home delivery in Hungary can be considered compatible with the EU law, in light of the CJEU’s decision.

By Miriam Fuchs, Senior Associate, and Lilla Lantai, Associate, Wolf Theiss

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

Our Latest Issue