According to the Budapest Business Journal citing business daily Világgazdaság, the International Centre for Settlement of Investment Disputes (ICSID) has ruled against Telenor in a case it brought against the State of Hungary. In its ruling the ICSID said the Hungarian government had not infringed on either domestic or international law, but rather had acted in harmony with both. The court’s decision has forced Telenor to drop its HUF30 billion (USD140 million) claim against the state and pay costs.
Telenor launched its appeal with the ICSID in 2003, arguing that the country’s telecoms market regulations were altered to put its Hungarian unit Pannon at a disadvantage for more than a decade. This, it argued, drove down the value of its Hungarian investment in direct violation of a bilateral agreement between Hungary and Norway on the protection of investments in either country.