The bloc has proposed reserving satellite spectrum for local firms, potentially limiting access for foreign players such as Elon Musk\u2019s firm<\/p>\n
The US has warned of severe consequences for EU businesses if Brussels goes ahead with plans to restrict American firms such as Elon Musk\u2019s Starlink from accessing satellite spectrum in the bloc.
\nThe warning, issued by US Ambassador to the EU Andrew Puzder, comes after the European Commission proposed earlier this year to reserve a share of the spectrum used for direct smartphone-to-satellite connections for EU market players beyond 2027, when current licenses expire.
\nThe move could limit access to satellite frequencies for foreign providers as part of Brussels\u2019 stated push for technological sovereignty.
\n\u201cIf the purpose is to make US less competitive, I think that that\u2019s not a legitimate goal of this kind of legislation,\u201d Puzder said in an interview with the Financial Times published on Monday. \u201cYou don\u2019t make European companies more competitive by making US companies less competitive.\u201d
\nThe envoy stressed that EU businesses \u201cshould be wary\u201d that US retaliation \u201cwould be very devastating\u201d for them, given the size of the American market.<\/p>\n
Read more<\/p>\n
EU seeking to target US Big Tech without angering Trump \u2013 FT<\/p>\n
Proposed in May, the EU measure envisages allocating part of the harmonized 2 GHz band for government services and the remainder for commercial use, with access regulated to favor European operators. The EC has said the plan would encourage market entry and diversification among EU suppliers while remaining open to non-EU operators.
\nPolitico reported earlier this month that European telecoms groups Deutsche Telekom, Orange, Vodafone, and Telefonica have begun discussing an alliance to jointly bid for the frequencies and to \u201csqueeze\u201d Starlink out of the direct-to-smartphone satellite connectivity market.
\nIn June, SpaceX, which operates the Starlink satellite internet network, criticized the proposal, claiming it could degrade connectivity in Ukraine, which uses the service to carry out drone strikes deep inside Russia. Earlier this month, Kiev stated that access to the service had been restricted as US President Donald Trump continued to step up pressure on Vladimir Zelensky to halt attacks on Russian oil refineries.<\/p>\n
Read more<\/p>\n
US backs Musk\u2019s X in legal battle with EU<\/p>\n
Beyond the spectrum proposal, Brussels has also put forward a Cloud and AI Development Act that would introduce digital sovereignty requirements for cloud service providers. The previously adopted Digital Services Act (DSA) and Digital Markets Act (DMA) allow Brussels to impose hefty fines on major tech companies, including Google, Apple, and Meta, for anti-competitive practices and violations of online content rules.
\nThe laws have drawn criticism from the US, which has also condemned the European Commission\u2019s \u20ac120 million ($136.51 million) fine against Elon Musk\u2019s X platform for alleged violations of the DSA.
\nIn his FT interview, Puzder questioned whether Brussels is seeking to promote competition or generate revenue for the EU budget through multibillion-euro fines on US tech companies. The envoy also told the newspaper that the bloc\u2019s ambitions to strengthen its tech industry risk being undermined by regulations that discourage US investment and fuel frustration among American tech firms.<\/p>\n","protected":false},"excerpt":{"rendered":"
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