The United States ambassador to the European Union, Andrew Puzder, told the Financial Times that European companies could face devastating retaliation if the European Union goes ahead with plans to restrict United States competitors in parts of the European market, and that European firms should be aware it could happen, given the size of the United States market. The remarks were aimed at a European Commission proposal from earlier this year to reserve part of the spectrum band that lets smartphones connect directly to satellites for European companies, which would limit the frequencies available to Chinese and American companies, including Elon Musk’s SpaceX, whose Starlink service wants that spectrum for its phone offering.
Puzder said he recognised Europe’s right to protect sensitive government information but warned against using legislation to favour domestic firms over United States competitors, questioned whether enforcement of the Digital Markets Act was aimed at competition or at raising revenue from United States firms, and argued that Brussels and Washington should instead join forces against China in the artificial intelligence race. SpaceX had already criticised the spectrum proposal, warning it could worsen connectivity in Ukraine, and the Commission said the proposal encourages market entry and diversification of European Union suppliers while remaining open to operators from outside the bloc.