The plaintiffs say their commercial radio frequencies were won by Class FM and Neo FM with unrealistic promises and as a result of political deals.

The lawsuit has been filed at the Washington-based International Center for the Settlement of Investment Disputes.

The claim alleges that the tenders were won with promises of unrealistically high fees of Ft 200 million plus 50-55% of net revenues after July 2011. The winners paid those fees for only six months, Bloomberg news reported, as the regulator lowered them this year. The regulator refused to reveal what the fees are now.

Danubius won a trial at the Supreme Court in February last year.

Emmis International Holding, owner of Sláger, and venture capital fund Accession Mezzanine, owner of Danubius, claim that the representatives of the then opposition Fidesz and the governing Socialist Party approached them to reach agreement with the political parties ahead of the tender results.

Accession Mezzanine claims that current minister without portfolio Tamás Fellegi and Zsolt Nyerges, both linked to Fidesz, urged the company to reach agreement with them. The two eventually founded Advenio, the company which won the Danubius frequency.

Fellegi earlier denied exerting pressure on the owner of Danubius or of having represented Fidesz at the business talks.

Emmis, which operated Sláger, said Ildikó Lendvai and László Puch – at the time the president and party director of the Socialist Party – approached them.

Lendvai claimed they discussed that the regulator would give preferential treatment to radio stations beaming more political content.

However Lendvai denied that Fidesz and the Socialists reached agreement on the allocation of frequencies. Puch denied ever having spoken with the investors."

Source: Hungary Around the Clock

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