Colombia is ordered to pay 70% of claimant’s legal expenses; costs of the proceedings are shared equally between the parties

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Tribunal awards compound interest, seeing not impediment in relevant prohibition under Colombian public policy

Colombia is ordered to pay damages requested by the claimant in full, but tax gross-up and legal costs related to domestic awards are excluded from compensation

Arbitrators see no contributory fault on the part of the claimant

Tribunal distinguishes between compensation standards applicable to expropriation and breach of FET

Colombia’s actions were contradictory and disproportionate

Colombia’s frustration of claimant’s legitimate expectations breached the BIT’s FET standard

Domestic law decisions are irrelevant to formation of legitimate expectations; judgment of Constitutional Court crystallized situation of unequal treatment of different telecom operators

Telefónica accrued a legitimate expectation that the new legislation would apply to pre-existing concession contracts

Legitimate expectations form part of fair and equitable treatment standard

State should expect to adapt contractual commitments to needs of constantly evolving mobile telecommunications sector

Constitutional Court judgment cannot release state from its international obligations

Tribunal dismisses abuse of arbitration objection

Tribunal emphasises specificities of telecommunications industry

Tribunal declines to dismiss case on prima facie basis, considering that allegations of conspiracy and existence of composite acts require full analysis on the merits

State’s international responsibility for conduct of domestic courts may be engaged in situations that do not involve allegations of denial of justice

Tribunal sees no res judicata in domestic award that decided purely contractual issues

Exclusive forum selection clause in Concession Contracts does not exclude possibility to resort to treaty arbitration

Exercise of sovereign prerogatives excludes purely contractual nature of the claims

Background: Shareholder in Colombian mobile operator takes issue with differential treatment concerning reversion of telecommunication infrastructure under concession contracts

Costs are split

Tribunal cannot import broader non-impairment protection through TPA’s MFN clause

In any event, the tribunal sees no nationality-based discrimination

Colombia’s decision to organize a new tender does not qualify as “treatment” that could breach NT or MFN standards

Tribunal rejects FET claim, seeing no arbitrariness, discrimination, or breach of due process in Colombia’s decision to hold a new tender instead of prolonging the 2009 Concession

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