US warns of retaliation over EU satellite spectrum plans

The US Ambassador to the EU, Andrew Puzder, has warned that European companies could face ‘catastrophic’ retaliation from Washington if Brussels moves forward with plans to restrict American competitors from parts of the European market.

The European Commission has proposed reserving specific frequency bands for European companies to facilitate direct satellite-to-smartphone connectivity. This move aims to bolster European technological sovereignty and reduce reliance on foreign providers. However, it would limit the available spectrum for non-EU companies, such as Elon Musk’s SpaceX, which operates the Starlink satellite network.

SpaceX has criticized the proposed spectrum allocation changes, warning they could worsen connectivity in Ukraine, where Starlink provides critical communications for both civilians and the military. Meanwhile, Musk is significantly increasing his political influence in the US, committing approximately $366 million to the 2026 midterm elections through his America PAC to influence regulatory decisions and government contracts that impact his companies, including SpaceX and Tesla.