US warns EU of 'devastating' retaliation over satellite spectrum

US Ambassador to the European Union Andrew Puzder warned on Sunday that European companies could face "devastating" retaliation in the American market if the bloc proceeds with a proposal to reserve critical satellite-to-smartphone spectrum for domestic operators, a move that would limit access for major US firms including SpaceX and Amazon.

Spectrum plan risks transatlantic fallout

Speaking to the Financial Times, Puzder cautioned that European businesses "should be wary" of potential retaliation, noting that the consequences could prove "very devastating" given the scale of the US market. The warning centers on a European Commission proposal to reserve portions of radio spectrum used for direct smartphone-to-satellite connections for European operators, effectively restricting foreign competitors' access to the bloc's infrastructure.

Starlink warns of Ukraine impact

SpaceX, which operates the Starlink satellite network, has criticized the proposed changes, warning they could undermine connectivity in Ukraine where the service has provided critical civilian and military communications since Russia's full-scale invasion. Puzder acknowledged Europe's right to protect sensitive government information but argued that legislation should not be used to disadvantage American competitors or compromise the reliability of trusted US products.

Ambassador questions EU regulatory motives

"If the purpose is to make the United States less competitive, I think that that's not a legitimate goal of this kind of legislation," Puzder said. "You don't make European companies more competitive by making US companies less competitive," he added, describing American products as reliable and trusted. The ambassador also questioned whether Brussels' enforcement of the Digital Markets Act aimed to foster competition or generate revenue through fines on US technology firms, urging cooperation against China in artificial intelligence and quantum computing. "It'd be a lot easier if we were working with Europe instead of fighting Europe," he said.