The United States has warned the European Union that it risks severe economic retaliation if Brussels moves ahead with a plan to carve out satellite spectrum for European operators, a proposal that would curb access for American and Chinese providers alike.
US Ambassador to the EU Andrew Puzder said on October 18 that European businesses could face “devastating” losses if the bloc proceeds with restricting American companies’ access to the spectrum, framing the European Commission’s proposal as a protectionist move that would hand domestic operators an unfair competitive edge.
At the center of the dispute is a European Commission proposal to reserve part of the radio spectrum used for direct satellite-to-smartphone communications exclusively for European companies, a change that would limit the frequencies available to non-EU satellite operators, including SpaceX’s Starlink network.
SpaceX has separately warned that the proposed restrictions could degrade Starlink connectivity in Ukraine, where the service has become a critical piece of civilian and military communications infrastructure throughout the war.
Puzder argued that rather than restricting American firms, the US and EU should instead cooperate on competing with China in strategic technology areas such as artificial intelligence and quantum computing, positioning the spectrum dispute as a distraction from a shared geopolitical priority.
The clash adds another layer of friction to the transatlantic relationship at a moment when Washington and Brussels are already navigating disagreements over trade and technology policy, with the outcome likely to shape how much leverage European regulators retain over foreign satellite operators active in the bloc.
