International court rules in favor of Hungary in Telenor case
The International Centre for Settlement of Investment Disputes (ICSID) has ruled in favor of the State of Hungary in a case brought against it by Norwegian telco Telenor, business daily Világgazdaság reported on Monday.
The ICSID said the state had infringed upon neither domestic nor international law, but had operated in harmony with both. As a result of the ruling, Telenor was forced to drop its Ft 30 billion claim against the state and pay the costs of the procedure.
Telenor appealed to the arbitration body in 2003 arguing that Hungary's telecommunications market regulations were intentionally changed to put its Hungarian unit Pannon at a disadvantage for more than a decade. This depreciated the value of Telenor's investments in Hungary, going against a bilateral agreement between Hungary and Norway on the protection of investments in either country, Telenor claimed.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.