U.S.-EU tech dispute deepens over spectrum proposal affecting SpaceX

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Highlights

U.S. ambassador Andrew Puzder warns European companies of potentially 'very devastating' retaliation if Brussels reserves spectrum for EU satellite operators, impacting SpaceX and Chinese rivals.
SpaceX criticizes the EU proposal, claiming it could weaken Starlink's connectivity in Ukraine where the network is vital for civilian and military communications during Russia's invasion.
Puzder extends criticism to EU competition regulation and digital sovereignty acts, warning that multibillion-euro fines and sovereignty requirements risk deterring U.S. tech investment in Europe.

Spectrum plan sharpens transatlantic pressure

As reported by Financial Times, U.S. ambassador to the EU Andrew Puzder says European companies should be wary of potentially "very devastating" retaliation if Brussels moves ahead with plans to reserve part of a spectrum band for European operators. The proposal concerns frequencies that allow smartphones to connect directly to satellites, a move that would reduce available access for U.S. and Chinese companies such as SpaceX, which runs the Starlink network.

Puzder’s warning comes after the European Commission this year proposed changes to spectrum allocation as part of a wider effort to strengthen European technological sovereignty. SpaceX has already sharply criticized the plan, warning it could weaken connectivity in Ukraine, where Starlink remains important for civilian and military communications during Russia’s full-scale invasion.

The Commission says the proposal is designed to encourage market entry and diversification among EU suppliers while remaining open to non-EU operators. But Puzder says Europe’s right to protect sensitive government information should not extend to legislation that favors domestic groups at the expense of American competitors.

Regulatory model draws wider U.S. criticism

Puzder also questions whether the EU’s enforcement of the Digital Markets Act is primarily about competition, pointing to multibillion-euro fines imposed on American technology companies. He suggests Brussels risks undermining its own ambition to build a stronger tech sector if regulation and penalties discourage investment from U.S. groups.

The criticism extends beyond satellite policy to the Commission’s broader push for sovereignty requirements in sensitive cloud services under its Cloud and AI Development Act. European policymakers are trying to reduce dependence on American technology and create domestic alternatives, amid concerns about reliance on foreign providers for critical infrastructure.

Puzder argues Brussels and Washington should work together instead of competing with each other, especially in artificial intelligence and quantum computing where both face strategic pressure from China. In his view, a regulatory approach aimed at curbing U.S. companies could make transatlantic co-operation harder at a time when both sides are trying to stay competitive in key technologies.

Our earlier article on TikTok’s Digital Markets Act case covered a legal opinion from the EU’s top court that backed the European Commission’s decision to label TikTok a “gatekeeper.” We noted that the recommendation increased pressure on ByteDance ahead of a final ruling, underscoring how strictly the EU is prepared to enforce DMA obligations on large platforms operating in the bloc.

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