The conflict centers on plans by the European Commission to redistribute satellite frequencies differently. Brussels wants to reserve part of them for European providers. This could reduce opportunities for American companies such as SpaceX, owner of Starlink, to expand their satellite services in Europe.
EU frequencies
The European plans are part of an EU course to become less dependent on American technology. Brussels aims to offer European companies more opportunities in satellite communication, data storage, and digital services. In doing so, the EU tries to gain more control over its own digital provisions and sensitive information.
Devastating
The European Commission presented proposals for a new allocation of satellite frequencies on May 27. The European Parliament and EU governments have yet to decide on this. The American warnings have so far not resulted in concrete retaliation measures, but the US ambassador to the EU calls the potential consequences for European companies devastating.
The threat does not stand alone. President Donald Trump previously warned of a US trade investigation into European fines on major American technology companies. Thus, European competition rules have also become a subject of a broader trade conflict between Brussels and Washington.
Non-renewal
Currently, the American satellite companies Viasat and EchoStar hold some of these European frequencies. Their existing usage rights expire in May 2027. The new regulation is to determine which companies gain access thereafter. European providers would be given priority for part of the available space.
Washington also opposes European plans to limit the use of American cloud services. The US acknowledges that the EU must be able to protect sensitive government information, but believes that American companies should not be disadvantaged. The proposed European legislation is intended to give agencies and regulators greater control over data storage and digital infrastructure.
Damage claim
According to a study commissioned by the American technology sector, stricter European regulations could cost them an estimated 115 billion euros in ten years. This is significantly more than the European Commission’s highest estimate of 18 billion euros. However, the American estimate assumes more extensive restrictions than those currently proposed.
The researchers expect that American agencies and companies will incur high costs when switching to other non-European providers and adapting their existing computer systems. Banks, hospitals, energy companies, and transportation enterprises are most at risk.
