US Ambassador Warns of 'Devastating' Retaliation if EU Limits Starlink Spectrum Access

Key points

• US Ambassador Andrew Puzder warned that European firms could face 'devastating' retaliation from Washington if Brussels moves forward with spectrum restrictions targeting non-EU companies.
• The European Commission proposed reserving parts of the satellite-to-smartphone spectrum band for European players, a move that would limit access for US and Chinese firms, including SpaceX’s Starlink network.
• Puzder stated that legislation designed to make US companies less competitive is not a legitimate goal, arguing that Europe cannot enhance its own competitiveness by undermining American rivals.
• The ambassador criticized the EU’s Digital Markets Act, questioning whether its multibillion-euro fines on American tech companies are intended to improve competition or simply to generate revenue for the European budget.
• Puzder urged the EU to drop its regulatory approach and join forces with the US to compete with China in AI and quantum computing, echoing President Trump’s concerns about losing the global tech race.

Background

This dispute occurs against a backdrop of escalating tensions regarding US support for Ukraine, where recent reports indicate that restrictions on Starlink and Starshield services have hampered Kyiv’s ability to defend against Russian drone attacks. While the current conflict focuses on EU spectrum allocation, the broader narrative involves Washington’s shifting stance on military aid and technological leverage, as seen in recent disagreements over Starlink speeds and US-Russia energy deals. The EU’s push for technological sovereignty, including the Cloud and AI Development Act, reflects a broader strategy to reduce dependence on American infrastructure amid concerns over US policy unpredictability.

Why it matters

The threat of US retaliation over spectrum access signals a potential shift from regulatory friction to active economic confrontation between the US and EU. If Washington imposes retaliatory measures, it could disrupt supply chains and investment flows for European tech firms, undermining the EU’s efforts to build domestic alternatives to US giants. This clash also risks fragmenting the Western alliance’s unified stance against China, as the US pushes for cooperation in AI and quantum computing while the EU prioritizes regulatory independence. The outcome will influence how the EU balances its sovereignty goals with its reliance on US technology, particularly in critical infrastructure and defense sectors.

What to watch

The European Commission is expected to defend its spectrum proposal, emphasizing that it remains open to non-EU operators while incentivizing local suppliers. US lawmakers and the administration may escalate pressure through diplomatic channels or trade measures if Brussels proceeds. The next phase will likely involve intense negotiations between Brussels and Washington to find a compromise that addresses EU sovereignty concerns without triggering US retaliation, while also determining whether the two sides can align their strategies against China in AI and quantum computing.