Andrew Puzder, the United States ambassador to the European Union, sharply criticized the European Commission’s proposal to reserve parts of a frequency band for European providers. According to reporting in the Financial Times, Puzder warned that Brussels could face “devastating” retaliation if it implements the proposal.
The issue: satellite‑to‑phone frequencies
The disputed frequencies would allow smartphones to connect directly to satellites. The Commission’s proposal is intended to strengthen the position of European operators in that market, which would in turn limit access for U.S. and Chinese companies — including SpaceX’s Starlink network associated with Elon Musk.
SpaceX has already strongly objected to the plan, warning that restrictions could weaken communications in Ukraine, where Starlink has been a critical infrastructure for both civilian and military use during the war.
Legal and economic concerns
Puzder acknowledged Europe’s right to protect government data but argued that this does not justify legislation that advantages domestic firms at the expense of international (notably U.S.) competitors. He also questioned enforcement of the Digital Markets Act (DMA), noting that multi‑billion euro fines imposed on American tech companies raise doubts about whether the regulation truly protects market competition or instead deters U.S. investors — potentially undermining the EU’s goal of building a stronger domestic tech sector.
Commission position and EU sovereignty aims
The European Commission counters that the proposal aims to diversify the EU market and remains open to non‑EU providers. European policymakers have stressed sovereignty expectations for cloud services and artificial intelligence: they want to reduce dependence on U.S. technology in critical infrastructure areas and develop local alternatives.
Cooperation versus protectionism
Puzder advocated closer transatlantic cooperation, especially in artificial intelligence and quantum computing, where both sides face strategic competition with China. He argued that regulations aimed at squeezing out U.S. firms would make such cooperation more difficult, despite its importance to both parties.
Why this matters
The dispute spans technical, economic and geopolitical domains: choices on frequency allocation will affect market access, investment incentives and critical communications infrastructure — particularly in conflict zones like Ukraine. Regulatory approaches will also shape the depth of transatlantic cooperation in strategic areas such as AI and quantum technologies.
Potential consequences
If the Commission insists on reserving parts of the spectrum for European providers, transatlantic tensions could intensify: Puzder’s threat of “devastating” responses and his questioning of DMA enforcement suggest possible political and economic fallout if Brussels proceeds.
(The reporting summarized here is based on the Financial Times coverage; the article presents the positions and arguments attributed to the parties involved.)
