US Warns of 'Destructive Retaliation' Over EU Satellite Regulations

"If Europe closes its door, so will the US." In an interview with the Financial Times (FT) on the 18th local time, US Ambassador to the EU Andrew Puzder warned that European companies could face 'destructive retaliation' from the US if the EU pushes through regulations reserving satellite internet service licenses exclusively for European firms.

Satellite internet services provide internet connectivity via artificial satellites rather than physical cable lines. The warning comes as the EU considers such measures to reduce its dependence on US tech companies and nurture European players. The FT reported that EU officials are concerned about the risks of entrusting critical telecommunications infrastructure to foreign companies.

Ahead of a frequency allocation process scheduled for May next year, the European Commission has signaled a new draft regulation that would assign one-third of the 2GHz band frequencies used for satellite internet services to operators within the EU. Another third has already been earmarked for Iris2, the EU's independent satellite network led by SES, Eutelsat, and Hispasat, which is slated to begin operations in 2029. Once the regulation is finalized, at least two-thirds of the frequency band would go to EU-based companies. Reuters reported that Europe's four major telecom carriers—Deutsche Telekom of Germany, Orange of France, Vodafone of the UK, and Telefónica of Spain—have begun discussing forming a consortium to bid for the frequencies allocated to regional operators.

SpaceX, whose access to the frequencies would be restricted, is pushing back against the EU's move. Ambassador Puzder pointed out, "If the legislative purpose is to diminish American competitiveness, that would not be a legitimate objective," adding, "Diminishing the competitiveness of US companies does not make European companies more competitive." He emphasized, "The US has the best-in-class products in this field."

The retaliation warning was not limited to satellite regulations. Puzder also criticized the EU's Digital Markets Act (DMA), which regulates Big Tech, saying, "One begins to wonder whether it is intended to address competition issues in the digital market or to extract profits from US companies for Europe's benefit." In July, Google was fined €460 million (about 690 billion won) by the EU for DMA violations over favoring its own services in search results.

The EU's draft regulation is set to be finalized during the frequency allocation process in May next year. Once the regulation takes effect, at least two-thirds of the frequency band will be allocated to EU-based companies, and attention remains focused on how the dispute between the US and the EU over telecommunications infrastructure and digital regulations will be resolved as the process continues.