The German book industry recorded turnover of nearly €9.9 billion in 2024, with €2.5 billion of that revenue generated online. Booksellers in Germany are required to observe a statutory fixed book price. This article explains what fixed book pricing is and why it was introduced in Germany. We also outline the challenges fixed book pricing poses for brick-and-mortar and online book retailers and explain when fixed book prices do not apply.

What’s in this article?

• What is fixed book pricing?
  
• Why does Germany use fixed book pricing?
  
• Challenges for book retailers
  
• Exemptions to fixed book pricing
  

What is fixed book pricing?

New books in Germany are subject to a binding final retail price. This fixed price applies to both brick-and-mortar retailers and ecommerce businesses. Underlying this system is the German Book Price Fixing Act (BuchPrG) that regulates who can set prices and who must observe these prices. It also determines the consequences for breaches of the regulations.

The core provision is Section 3 of the BuchPrG that requires all retailers who sell books to individuals in Germany—either commercially or in a business context—to adhere to the fixed final price. An individual is anyone who purchases a book for personal use and not for resale.

Publishers and importers set the prices for books, not retailers. According to Section 5 of the BuchPrG, they define and publish a final retail price—including value-added tax (VAT)—for each edition of a book. This price is binding for all retailers. Imports are subject to special rules on minimum price. This is intended to ensure that the price recommended or stipulated by the country of origin is not undercut. However, importers can apply a proportional price reduction under specific purchase conditions.

Price tiers

According to Section 5.4 of the BuchPrG, publishers and importers are permitted to define tiered prices. Alongside the regular final retail price, tiered pricing can include the following:

• Series prices: Standard prices for titles released as part of a series
  
• Volume prices: Discounted prices for larger-volume orders
  
• Subscription prices: Reduced prices for preorders prior to the book’s release
  
• Special prices for certain institutions: Special prices for institutions that were heavily involved in producing a work
  
• Special prices for magazine subscribers: Discounted prices for subscribers when the magazine’s editorial team writes and releases a book
  
• Premiums on installments: Surcharges permitted for installment payments
  

Scope of application

Fixed book pricing only covers new books. Used books, antique volumes, secondhand sales, and returns are not subject to fixed pricing and can be sold without restriction. However, fixed book pricing applies to more than just classic printed volumes. According to Section 2 of the BuchPrG, fixed book pricing also applies to the following:

• Sheet music
  
• Cartographical products
  
• Products reproducing or replacing books, sheet music, or maps (e.g., e-books)
  
• Combined products where the predominant element is book-like
  
• Foreign language books that are primarily intended for sale in Germany
  

Consequences for noncompliance

Breaching the regulations on fixed book pricing can have legal consequences. According to Section 9 of the BuchPrG, a number of different parties—including booksellers, price maintenance monitors, and certain professional associations—can alert the authorities to infringements. The German Publishers and Booksellers Association is a key player in monitoring compliance with fixed book pricing in Germany.

Reported infringements frequently result in written warnings that urge retailers to correct their prices. If no action is taken, the German Publishers and Booksellers Association can demand a cease and desist order. In this order, the retailers who have received the warning letter must agree to comply with the fixed price policy. Violations usually result in legal action and fines.

Offenders can also face claims for damages in cases of negligence or willful intent. If there are grounds to suspect a breach of fixed pricing regulations, Section 10 of the BuchPrG allows for a retailer’s accounts to be inspected. A specialist under an obligation of confidentiality can inspect relevant business documents and report any violations. If a company is found to have committed a breach, they are responsible for the costs of the audit.

Why does Germany use fixed book pricing?

The idea of fixed book pricing has a long tradition in Germany. Fixed book prices have been in use since 1888 to establish a stable book market and enforce the same prices for all sales outlets. Many countries across Europe adopted similar concepts after World War II to safeguard cultural diversity and access to literature. Fixed book pricing became law in 2002, with amendments following in 2016.

Fixing the price of books primarily serves to protect books as cultural assets (see Section 1 of the BuchPrG). Setting binding retail prices ensures that a comprehensive range of high-quality books is available and accessible to a broad public. Price fixing also helps to support authors and contributes to the economic stability of the book industry. This benefits both small, owner-operated bookstores and large chains.

Below, we provide an overview of the most important goals of fixed book pricing:

• Protect the cultural heritage of books: Fixed book pricing helps to preserve the diversity of books and publishers. This helps even small or specialist publishers to publish their works.
  
• Promote reading: Fixed book pricing indirectly encourages reading because it ensures broad availability of books and makes it easier for people from all backgrounds to access literature.
  
• Support the book industry: Fixed prices help secure the financial survival of bookstores of all sizes. In particular, small bookstores are protected against price pressure from large chains, ensuring that the supply of books remains evenly spread.
  
• Assure quality: Fixed book pricing prevents publishers or retailers from reducing their quality or limiting offered services due to cost pressures.
  
• Provide fair compensation: Authors enjoy a fixed percentage of sales that isn’t impacted by special offers. Their books also remain on the market at a stable price for a longer period of time.
  

Challenges for book retailers

While fixed book pricing in Germany provides a clear set of rules for selling books, it also comes with a number of particular challenges for the retail sector.

Brick-and-mortar bookstores

When customers purchase books with other products, discounts on their total purchase must not be lower than the price of the books. For example, a coupon for a book and calendar combo could result in the price of the book being overly reduced. This could be a major breach of fixed book pricing regulations.

Campaigns such as “Buy two books, get a third free” have to be designed so the individual book price does not fall below the stipulated final retail price. Bookstores have to check the math on these offers carefully so they don’t risk unintentionally violating regulations.

Online retailers

Online retailers face the same challenges as brick-and-mortar stores. Online stores that carry a wide range of products have to be particularly vigilant when offering discounts on order totals to avoid undercutting legally mandated book prices. Automated systems for discounts, coupons, or codes can unintentionally reduce a customer’s total below the stipulated final retail price.

Stripe Payments helps retailers and publishers process payments at their points of sale and in their online stores. Access to easy-to-configure payment tools and more than 125 payment methods ensures you stay compliant with fixed pricing regulations and give customers a smooth payment experience. Plus, Stripe Tax calculates and remits VAT on all sales, taking into account all national tax rules and rates.

Cross-border retailers

As a general rule, the BuchPrG only applies within Germany. This means that books delivered to overseas customers are not subject to fixed book pricing. In this case, retailers are permitted to apply different prices.

Foreign retailers selling books to customers in Germany must adhere to German regulations on fixed book pricing. This is true regardless of the prices they apply in their own country. The final retail price set in Germany is also binding in the cross-border online retail sector.

Exemptions to fixed book pricing

Statutory regulations generally apply to all new books in Germany. However, Section 7 of the BuchPrG provides exemptions where fixed end prices are not stipulated or discounts are permitted.

Time limit

Publishers and importers are permitted to revoke a fixed price once a book has been on the market longer than 18 months. Fixed prices can be revoked even earlier for books that are published regularly or significantly decrease in value over time. This requires a reasonable period of time to have passed since publication.

Sales to specific groups

Fixed book prices do not apply to sales to specific groups:

• Importers, publishers, booksellers, or permanent employees who are purchasing books for personal use
  
• Authors of independent publications who are purchasing books for personal use
  
• Educators who want to determine if books are suitable for teaching
  

Special cases in retail

There are certain situations in retail where books can be sold below the stipulated final retail price or where additional incentives are permitted:

• Used books: Books that have already been sold are not subject to fixed pricing and can be sold without restrictions.
  
• Damaged stock: Books that are damaged or contain printing errors can be sold below the final retail price.
  
• Clearance sale items: If a bookstore is closing down, it can sell books from its supply at reduced prices for a maximum of 30 days. The store must provide prior notice to its suppliers.
  
• Additional incentives: Low-value add-ons, free shipping, or other industry-standard incentives are not considered breaches of fixed book pricing.
  
• Cross-border sales: Deliveries within the European Economic Area (EEA) are exempt from fixed book pricing as long as they do not serve to circumvent the law in Germany.
  

Discounts for schools and libraries

Special exemptions to fixed book pricing permit schools and libraries to purchase books at a discount:

• Academic libraries: Up to 5% off
  
• Public, municipal, religious, or military libraries: Up to 10% off
  

Schools get tiered discounts for bulk orders based on the volume and total value of their orders:

• Small orders: 8%–13% off each item
  
• Large orders: 13%–15% off, depending on order total
  
• Schoolbooks purchased within the school’s budget: Generally 12% off