The Hungarian Competition Authority (GVH) has fined Paradox Security Systems Bahamas Ltd. and its Hungarian distributor a total of 365.5 million HUF for anti-competitive practices that lasted nearly a decade. The authority found that these companies restricted competition among sellers of security equipment in Hungary and limited trade between EU member states.

In a previous investigation concluded in late 2019, the GVH discovered that Paradox Bahamas and its distributors, Power Security Trading Ltd. and Trióda Security Technology Ltd., had engaged in practices that hindered competition. These included prohibiting the export of Paradox products, setting minimum installer margins that indirectly fixed resale prices, and banning the online publication of end-user prices, which restricted online sales.

While Trióda admitted to the violations and cooperated with the GVH, Paradox Bahamas and Power contested the authority's decision in court. The administrative court raised concerns about market definition and the justification of the impact on trade between member states, leading to a remand for a new procedure.

In the repeated procedure, the GVH confirmed the same violations based on distribution contracts, market behavior, and evidence obtained during raids. The anti-competitive behaviors allowed both resellers and installers to achieve higher margins on Paradox products, ultimately costing consumers more. This situation pressured resellers and installers to recommend these products over others, significantly limiting competition in the Hungarian market.

As a result of the identified violations, the GVH imposed a fine of 268 million HUF on Paradox Bahamas and 97.5 million HUF on Power. The GVH considered Power's status as a small and medium-sized enterprise and its cooperation in the repeated procedure when determining the fine.