The key facts

  • US Ambassador to the EU Andrew Puzder suggested a 'devastating' response against European companies on the US market over the EU's satellite spectrum plan.
  • The European Commission's proposal would reserve part of the 'satellite-to-smartphone' spectrum for European operators, potentially restricting access for SpaceX and Amazon.
  • SpaceX warned that the changes could undermine communications in Ukraine, where Starlink plays a key role in civilian and military communications.

The essence of the conflict

US Ambassador to the European Union Andrew Puzder warned in an interview with the Financial Times published on Sunday that European companies 'should be on alert' over a possible response from the US if the EU adopts the European Commission's proposal to reserve a significant portion of the radio spectrum used by smartphones for direct connection to satellites for European operators. According to him, the consequences could be 'very devastating' given the size of the American market.

Who the plan would affect

The proposal could restrict access for foreign companies, including SpaceX, the operator of the Starlink satellite network, and Amazon. SpaceX has already criticized the proposed changes, warning that they could undermine connectivity in Ukraine, where Starlink has played an important role in civilian and military communications since Russia's full-scale invasion.

The ambassador's position

Puzder acknowledged Europe's right to protect sensitive government information, but said that legislation should not be used to disadvantage American competitors. 'If the goal is to make the United States less competitive, I don't think that's a legitimate goal of such legislation,' he said, adding that 'you can't make European companies more competitive by making American companies less competitive.'

Criticism of the DMA and a call for cooperation

The ambassador also questioned whether the EU's application of the Digital Markets Act is aimed at fostering competition or at generating revenue through fines on American technology companies. He called on Brussels and Washington to cooperate in the race with China in artificial intelligence and quantum computing, warning that regulatory disputes risk undermining shared interests: 'It would be much easier if we were working with Europe rather than fighting with Europe.'