Dispute Over Coronavirus-Era Mask Procurement in Germany Reaches Federal Court of Justice

The 2.3-billion-euro dispute between suppliers and the federal government over the controversial mask procurement method applied at the beginning of the coronavirus pandemic in Germany has begun to be examined by the Federal Court of Justice.

Open House Method and Initial Process

While a shortage of protective equipment was experienced at the beginning of the coronavirus pandemic, then-Health Minister Jens Spahn implemented a method called Open House in the spring of 2020.

According to this practice, anyone who wished had the right to sell masks to the federal government at a net price of 4.50 euros per piece, and it was later realized that this price was much too high.

Halt of Purchases and Billion-Euro Lawsuits

A large number of companies entered the system expecting high profits, and realizing that expenses would reach astronomical proportions, the federal government rejected the vast majority of the purchases.

Some 90 lawsuits totaling up to 2.3 billion euros were filed between the government, which withdrew from the contracts, and suppliers left to deal with the costs of their unsold inventories.

Expected Role of the Federal Court of Justice Ruling

The Federal Court of Justice in Karlsruhe took up the files for review in order to guide other ongoing legal proceedings and clarify fundamental legal questions.

It was noted that in previous cases heard in the courts of Bonn and Cologne, the federal government had lost some and won others.