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Washington Threatens “Devastating” Consequences as Europe Moves to Curb Starlink
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The United States has warned that European companies could face “devastating” retaliation if the European Union moves forward with plans to restrict access to satellite communication frequencies for American companies, including Elon Musk’s SpaceX, as Brussels seeks to reduce its dependence on foreign technology.
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According to the Financial Times on October 18, US Ambassador to the EU Andrew Puzder warned that Washington could take retaliatory measures against European businesses if the bloc introduces regulations favoring domestic satellite operators over American competitors.
Asked whether European companies should be concerned about potential retaliation, Puzder said they “should be wary that it could happen and it would be very devastating for those companies,” citing the size of the US market.
The warning follows a European Commission proposal to reserve part of the radio spectrum used for direct satellite-to-smartphone communications for European operators. The measure would limit access to certain frequencies for non-EU companies, including American and Chinese satellite providers.
SpaceX has strongly criticized the proposal, warning that restrictions could negatively affect connectivity in Ukraine, where its Starlink satellite network has played a critical role in civilian and military communications since Russia launched its full-scale invasion in February 2022.
At the same time, the dispute comes amid renewed concerns about Ukraine’s reliance on American satellite communications infrastructure.
On October 14, Ukrainian forces reported restrictions affecting SpaceX satellite terminals installed on high-speed drones. Ukraine’s Defense Ministry subsequently confirmed that terminal operations had been restored, although reports of additional disruptions continued.
On the frontline, Starlink supports communication between Ukrainian military units, the transmission of battlefield intelligence, and drone operations. Interruptions to the service can disrupt coordination and limit the effectiveness of unmanned systems used for reconnaissance and strikes.
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Beyond military operations, satellite connectivity also provides backup communications for emergency responders and essential civilian services, particularly when Russian attacks damage telecommunications infrastructure or disrupt electricity supplies. Any prolonged loss of connectivity could complicate rescue operations and emergency coordination.
The proposed changes form part of a broader European effort to strengthen technological independence and reduce reliance on American companies for critical infrastructure. European policymakers have increasingly raised concerns about dependence on US technology amid uncertainty surrounding President Donald Trump’s policies.
Puzder acknowledged Europe’s right to protect sensitive government information but argued that regulatory measures should not undermine American companies to benefit European competitors.
“You don’t make European companies more competitive by making US companies less competitive,” Puzder told the Financial Times.
The ambassador also criticized the EU’s broader approach to regulating major technology companies, questioning whether enforcement of the Digital Markets Act was intended to promote competition or generate revenue through multibillion-euro fines imposed on American businesses.
Beyond satellite communications, Brussels is pursuing additional measures to strengthen its domestic technology sector, including proposed sovereignty requirements for providers of sensitive cloud services.
Puzder warned that excessive regulation could discourage American investment in Europe and weaken cooperation between the two economies. He urged Washington and Brussels to work together on artificial intelligence and quantum computing rather than impose additional restrictions on each other’s technology companies.
The European Commission defended its proposal, saying it “incentivises the entry into the market and diversification of EU suppliers, while remaining open to non-EU operators.”
Meanwhile, the European Union is developing its own secure satellite communications network, IRIS², designed to provide government and commercial connectivity through a constellation of 290 satellites. The project is expected to become operational by 2030 as part of the bloc’s efforts to strengthen its space-based communications capabilities.
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