Czech Competition Authority Fines Lesy ČR Over Export Ban
The Czech competition authority has imposed a fine of over 17 million CZK on Lesy ČR for violating competition rules by prohibiting the export of wood chips.
16.09.2026 | Czech competition authority
The Czech Office for the Protection of Competition (ÚOHS) has fined the state enterprise Lesy ČR 17.268 million CZK for breaching both Czech and EU competition laws. The violation occurred between July 2, 2021, and July 31, 2024, when Lesy ČR entered into an agreement with one of its buyers that prohibited the export of wood chips, thereby disrupting competition in the market for logging residues and wood chips.
Such export bans are considered anticompetitive practices that the ÚOHS has consistently penalized. The agreement with the buyer, CB-EKO, restricted contractual freedom by unconditionally prohibiting both active and passive sales of wood chips and logging residues outside the Czech Republic. The enforcement of this ban was ensured by the possibility of terminating the framework agreement. According to ÚOHS Vice-Chairman Kamil Nejezchleb, such arrangements directly eliminate cross-border competition and hinder the creation of a unified European market.
Lesy ČR defended itself by arguing that the agreement's harmfulness was minimal, but the ÚOHS rejected this claim, deeming the agreement anticompetitive. The authority emphasized that the quantity of wood chips that could have been exported was irrelevant. The agreement clearly restricted competition and the ability of CB-EKO to export wood chips to other EU countries, which is typically regarded as a hardcore anticompetitive agreement.
Lesy ČR manages approximately 45% of forested land in the Czech Republic and is the largest producer of raw timber. Its primary activities include managing over 1.2 million hectares of state-owned forest land and selling timber and finished wood products. The authority calculated the fine based on the company's turnover in the relevant market, considering that Lesy ČR initiated the prohibited agreement and ensured its compliance.
As a mitigating factor, the ÚOHS took into account the voluntary termination of the anticompetitive conduct by Lesy ČR immediately after the administrative proceedings began.
