USA threatens Europe over Starlink restrictions

The US is threatening European companies with retaliatory measures if the EU restricts market access for American satellite providers. Such steps could be “devastating” for affected companies, said Andrew Puzder, the US ambassador to the EU, to the Financial Times. Puzder left it open exactly what countermeasures he meant. He simply referred to the size of the US market.

The trigger for the threat is a proposal by the EU Commission to reserve some of the radio frequencies for direct connections between smartphones and satellites for European providers. This would mean that US and Chinese companies would have fewer frequencies available.

Elon Musk's space company SpaceX is also affected by the EU plans, as is his satellite network Starlink. The company warns that the plans could affect Ukraine's internet coverage. Starlink is used there for civil and military communications.

He also questioned whether the billions in fines that the EU imposed on US tech companies as part of its Digital Market Act really served to promote competition. Puzder said he wondered whether they weren't primarily intended to bring in revenue for Europe. He also called for closer cooperation in the technology race with China.

The EU wants to reduce its dependence on American technology. An important reason for this are concerns about the unpredictability of US President Donald Trump and the dependence on foreign companies for critical infrastructure.