US Warns EU of 'Devastating Retaliation' If US Firms Restricted in Satellite Internet Spectrum

The U.S. Ambassador to the European Union has warned that European companies could face "devastating retaliation" if the EU restricts access for U.S. firms such as SpaceX in the allocation of satellite internet service licenses.

According to the Financial Times on the 18th (local time), U.S. Ambassador to the EU Andrew Puzder warned that such measures could be taken if the European Commission pushes ahead with a regulatory proposal to restrict satellite internet spectrum allocations to non-EU companies.

Asked about the possibility of U.S. retaliatory measures against European companies, Ambassador Puzder said, "We need to be on guard that such a thing could happen, and given the size of the U.S. market, it would be very fatal to those companies."

Ambassador Puzder's remarks came as the EU pursues measures to allocate a portion of satellite internet service rights exclusively to regional operators in order to reduce reliance on U.S. tech companies and foster European firms.

Ahead of the spectrum allocation process scheduled for May next year, the European Commission previously proposed new regulations to allocate one-third of the 2-gigahertz (GHz) spectrum band used for satellite internet services to EU-based operators.

Another one-third has been allocated to IRIS2, the EU's independent satellite constellation led by operators such as SES, Eutelsat, and Hispasat, scheduled to launch in 2029.

If these regulations are finalized, at least two-thirds of the spectrum band will go to EU-based companies.

In connection with this, Reuters reported that Europe's top four telecom operators—Germany's Deutsche Telekom, France's Orange, Britain's Vodafone, and Spain's Telefónica—have begun discussing plans to form a consortium to participate in the bidding for the region's allocated satellite communication spectrum.

The Financial Times explained that EU policy makers are trying to reduce their reliance on U.S. tech companies amid concerns over the risks of depending on foreign firms for critical communications infrastructure while U.S. President Donald Trump takes unpredictable paths.

On the other hand, SpaceX, whose access to spectrum usage rights has been restricted, is pushing back against the EU's move.

"If the legislative objective is to diminish U.S. competitiveness, that would not be a legitimate goal," Ambassador Puzder said. "Undermining the competitiveness of U.S. companies does not make European companies more competitive."

He also emphasized, "The United States has the highest-level products in this field."

Ambassador Puzder also criticized the EU's Digital Markets Act (DMA), aimed at regulating the market dominance of big tech companies, stating, "We are beginning to wonder if this is intended to extract profits from U.S. companies to benefit Europe."

Previously, Google was fined 460 million euros (approx. 690 billion KRW) by the EU in July for violating the Digital Markets Act (DMA) by favoring its own services in search results for shopping, hotels, and other categories.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.