I. INTRODUCTION 

1. The present dispute is submitted to the International Centre for Settlement of Investment Disputes (ICSID or the Centre) on the basis of the Agreement between the Kingdom of the Netherlands and the Hungarian People’s Republic for Encouragement and Reciprocal Protection of Investments dated 2 September 1987, which entered into force on 1 June 1988 (the Netherlands BIT), the Agreement Between the Swiss Confederation and the Hungarian People’s Republic on the Reciprocal Promotion and Protection of Investments dated 5 October 1988, which entered into force on 16 May 1989 (the Swiss BIT and jointly with the Netherlands BIT, the Treaties), and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which entered into force on 14 October 1966 (the ICSID Convention). 

2. The Claimants are Emmis International Holding, B.V. (Emmis International), Emmis Radio Operating, B.V. (Emmis Radio), and Mem Magyar Electronic Media Kereskedelmi és Szolgáltató Kft (MEM). Emmis International and Emmis Radio are both corporations organized and existing under the laws of the Netherlands. MEM is a company organized and existing under the laws of Hungary, allegedly controlled by Mr Jürg Marquard, a Swiss national. These parties will be collectively referred to hereinafter as Claimants. 

3. The Respondent is Hungary and is referred to as Hungary or Respondent. 

4. The dispute relates to the alleged unlawful expropriation by Respondent of Claimants’ investments in a national FM-radio frequency broadcasting licensee, Slàger Rádio Műsorzolgáltató Zrt (Slàger). 

5. This Decision concerns Respondent’s request for bifurcation of these proceedings, made by Notice of Jurisdictional Objections and Request for Bifurcation dated 28 May 2013 (Respondent’s Request). Pursuant to ICSID Convention Article 41 and Rule 41 of the Arbitration Rules, Respondent seeks a suspension of the proceedings on the merits and the resolution of Hungary’s jurisdictional objections, summarised in its Request, as a preliminary matter.