US warns EU of 'devastating' retaliation over satellite spectrum plan

The United States ambassador to the European Union has warned that European companies could face “devastating” retaliation in the US market if Brussels pushes ahead with plans to reserve key satellite-to-smartphone spectrum for European operators.

In an interview with the Financial Times released on Sunday, Andrew Puzder said European businesses “should be wary” of potential countermeasures, warning the consequences could be “very devastating” given the size of the American market.

The dispute centres on a European Commission proposal to set aside part of the radio spectrum used by smartphones to connect directly to satellites for European operators — a move that would limit access for American firms such as SpaceX, which operates the Starlink network, and Amazon’s satellite business.

SpaceX has criticised the plan, warning it could undermine connectivity in Ukraine, where Starlink has carried civilian and military communications since Russia’s full-scale invasion.

Puzder acknowledged Europe’s right to protect sensitive government information but argued regulation should not be used to disadvantage American competitors. “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,” he said. “You don’t make European companies more competitive by making US companies less competitive.”

The ambassador also questioned whether EU enforcement of its Digital Markets Act was intended to promote competition or generate revenue through fines on US technology companies, and urged Brussels and Washington to cooperate in the race against China on artificial intelligence and quantum computing.