The United States has warned the European Union that a tough response could follow if Brussels introduces protectionist rules against US tech companies, including the operator of the Starlink satellite network SpaceX. The warning was issued by US Ambassador to the EU Andrew Puzder and was quoted by the British newspaper Financial Times.
“Brussels needs to be careful“ and take into account the possibility of a strong reaction from Washington, Puzder said. According to him, the size of the US market gives the US significant opportunities to retaliate.
“If the aim is to reduce the competitiveness of the United States, then I do not think that is a legitimate aim of this type of legislation. You cannot increase the competitiveness of European companies by undermining the competitiveness of American ones,“ the American diplomat said.What the proposal envisages
The dispute concerns a proposal by the European Commission for the future allocation of the frequency spectrum for mobile satellite services. It concerns the 2 GHz band, which is used for direct connections between satellites and mobile devices. The technology allows phones and other devices to communicate in areas without terrestrial mobile coverage.
The Commission proposes that one third of the spectrum be reserved for government services, critical communications, security and defense. This segment must be served by an EU operator and be linked to the European program for secure satellite communications IRIS².
The other two thirds are intended for commercial applications, including direct connection services to smartphones, the Internet of Things, emergency devices and communications for passengers on airplanes. Half of this commercial resource will be reserved for European operators, while the other half will be open to European and non-European companies.
Starlink remains outside the core European segment
This means that US companies such as SpaceX and the Starlink operator can only apply for a more limited portion of the frequencies. The same applies to other companies outside the EU, including Amazon's US satellite business.
The reform is to be implemented after the expiry in May 2027 of the current licenses granted to operators Viasat and EchoStar. The European Commission presents the change as a measure of sustainability, security and competitiveness, while Washington sees it as a possible discriminatory restriction on US companies.
The final rules still have to go through the European Union's legislative procedure. Until then, discussions are pending on the conditions for participation, the selection criteria and the way in which access will be distributed between European and foreign operators.
Sources: ft.com, reuters.com, euronews.com