US ambassador threatens EU with 'catastrophic retaliation'. In the background is the issue of technological independence

In January, the European Commission proposed that, as part of the Digital Networks Act (DNA), the part of the radio spectrum that allows smartphones to connect directly to satellites should be reserved exclusively for European entities. These actions would be aimed at reducing dependence on large technology companies and supporting domestic companies.

We want to increase Europe's competitiveness. We want to strengthen Europe's security. We want to take advantage of new technological opportunities. And all this taking into account the current, changing geopolitical context, said Henna Virkkunen, Vice-President of the European Commission for technological sovereignty, security and democracy, at a press conference in May. Our proposal meets all these requirements, she added.

The ambassador indicates that the EU and the USA should compete with the Chinese together

"FT" emphasized that the implementation of this announcement will mean limiting the available radio frequencies for companies from China and the USA, including SpaceX, which is the operator of the Starlink satellite network.

Asked by the FT to comment on this matter, Puzder stated, among other things, that European companies "will not become more competitive just because the competitiveness of American companies is limited."

If the goal is to weaken U.S. competitiveness, I don't think it's a legitimate goal for this type of legislation, the American diplomat said. He added that "instead of seeking to limit the dominance of American corporations, Brussels and Washington should join forces to compete with China in the race to develop artificial intelligence."

Puzder threatened that if the proposed solutions were adopted, European entities "should be careful because (...) it would be extremely painful for them."

Will the European solution harm Ukraine?

SpaceX issued a statement regarding the EU initiative. The company threatened that the implementation of the EC's request "may worsen the quality of communications in Ukraine." The FT emphasized that since the Russian invasion began in February 2022, Starlink has played a key role in civilian and military communications in Ukraine.

According to the declarations of EC officials, the DNA package is one of the initiatives intended to increase the EU's technological sovereignty and reduce dependence on American technologies. According to Brussels, it is intended to be an "encouragement to diversify suppliers from the EU while maintaining openness to entities from outside the Community."