Budapest, October 14, 2025 – The Hungarian Competition Authority (GVH) has fined Paradox Security Systems Bahamas Ltd. and its Hungarian distributor, Power Biztonságtechnikai, a total of HUF 365.5 million (approximately $1.08 million) for restricting competition in the sale of security technology products.
The decision follows a court-ordered re-investigation, which confirmed GVH’s original findings from 2019, concluding that Paradox and its partners limited competition among resellers for nearly ten years and restricted trade between EU Member States.
GVH found that Paradox Bahamas, together with Hungarian distributors Power Biztonságtechnikai and Trióda Biztonságtechnika (Trióda), imposed a series of restrictions that distorted competition. These included:
- Banning passive exports, preventing Hungarian resellers from selling Paradox products abroad.
- Fixing minimum installer margins, effectively setting resale prices indirectly.
- Restricting online sales by prohibiting the publication of end-user prices on websites.
These practices ensured higher profit margins for resellers and installers, which ultimately increased costs for consumers. According to the authority, the inflated margins also led sellers to prioritise Paradox products over rival brands, exploiting customers’ limited technical knowledge.
Although the original 2019 decision was annulled by a public administration court due to procedural concerns over market definition and the assessment of cross-border effects, the GVH’s new investigation reaffirmed the violations using the same evidence base — including contracts, market conduct, and emails seized during inspections.
In the repeated case, Trióda’s earlier admission of wrongdoing and settlement remained valid, while Power joined in acknowledging its infringement. Power also committed to implementing a compliance programme, which the GVH made mandatory as part of the ruling.
Penalties and Leniency
The GVH Competition Council imposed fines of:
- HUF 268 million on Paradox Bahamas Ltd.
- HUF 97.5 million on Power Biztonságtechnikai Kft.
The authority noted that Power’s fine was reduced to reflect its SME status, cooperation during the second procedure, and formal settlement. With this, both Hungarian distributors involved in the original case have now admitted to the infringements.
