Türkiye’s Competition Authority has fined seven producers of MDF and chipboard a combined total of about 1.3 billion lira after finding that they coordinated their bids in timber sale tenders run by the state forestry agency, Bigpara, part of the Hürriyet group, reported on Monday.
The wood bought at these tenders is the main raw material for MDF (medium-density fibreboard) and chipboard, the panels used in most mass-produced furniture, kitchen cabinets and fitted wardrobes.
Who was fined
According to the report, the fines were set at approximately:
– Kastamonu Entegre: 515 million lira – Yıldız Entegre: 470 million lira – Kronospan: 148 million lira – Çamsan Ordu: 88 million lira – Çamsan Entegre: 57 million lira – Vezirköprü Orman Ürünleri: 28 million lira – Divapan: 23 million lira
The authority concluded that, instead of bidding independently, the companies acted in concert in tenders held by the General Directorate of Forestry (OGM), which sells timber from state forests. Bigpara said such coordination can prevent prices from being set competitively and reduce public revenue.
Six of the companies settled with the authority, a procedure under Turkish competition law that ends an investigation in exchange for admitting the violation and receiving a reduced fine. Yıldız Entegre was the only company to go through the full investigation procedure.
Yıldız Entegre had rejected the allegations
Anadolu Agency (AA) reported on 6 October that the Competition Board had heard Yıldız Entegre’s oral defence at the authority’s headquarters in Ankara, under board president Ahmet Algan, and would announce its decision within 15 days. At that hearing, the investigation team argued that the company had breached the Law on the Protection of Competition and should be fined. The company denied the allegations, describing the claimed links between tenders as based on gossip and speculation. Companies can challenge board decisions at the Ankara administrative courts.
It is not the first time the sector has drawn the watchdog’s attention. In a 2021 decision published on its website, the Competition Board fined 11 MDF and chipboard producers, including Kastamonu Entegre, Yıldız Entegre and Kronospan, a total of about 271 million lira for price-fixing.
What it means for residents
The case concerns how raw timber is bought rather than the retail price of furniture, and the fines do not change prices directly. But wood-based panels are a large part of the cost of furniture, kitchens and interior fit-outs, so competition in the sector matters to anyone furnishing a new home or renovating. For a broader look at household costs, see our cost of living in Turkey 2026 guide. The same authority recently cleared the sale of EspressoLab to the UAE’s MAIR Group. Buyers budgeting for a property purchase can also check our explainer on the costs of buying a home in Türkiye.
Sources
- 7 şirkete milyarlık ceza! İki dev de listede… (Bigpara / Hürriyet)
- MDF ve yonga levha sektörüne yönelik rekabet soruşturmasında sözlü savunma toplantısı yapıldı (AA via Foreks)
- MDF nihai karar internet duyurusu, 2021 (Rekabet Kurumu)
Photo: Vaderluck at English Wikipedia / CC BY-SA 3.0, via Wikimedia Commons
