The German Federal Ministry of Health has suffered a major legal defeat in a dispute over COVID-19 mask purchases.

A court ordered the government to pay 86 million euros plus interest to a mask supplier, potentially setting a precedent for similar pending cases.

The ruling stems from the ministry's refusal to accept mask deliveries during the early stages of the pandemic, despite initially promising to buy unlimited quantities at high prices.

Current Health Minister Karl Lauterbach is now under pressure to address the issue, which could cost taxpayers billions.

The case has reignited criticism of former Health Minister Jens Spahn's handling of mask procurement during the crisis.