America's Federal Communications Commission this week issued a consultation asking for industry feedback on the state of international reciprocity in satellite services. The move signals that Washington is preparing for confrontation over one of Europe's most ambitious technology initiatives: the proposed EU Space Act.
Washington believes other countries are putting in place barriers to block US satellite businesses from accessing their markets by imposing unacceptable regulatory burdens on them, with the implication that the US should mirror any such actions. FCC chair Brendan Carr said in an interview that the US will not hesitate to push European satellite firms out of the American market if this is not the case. This threat reflects the Trump administration's broader approach to trade disputes: reciprocity as both principle and weapon.
The FCC's complaint centres on the draft EU Space Act, which proposes a harmonised framework for space activities across the region, and the Digital Networks Act, which seeks to do the same for telecoms. Concerns relate to harmonised EU-wide authorisations for satellite spectrum use, and whether these would necessitate wholesale re-licensing of US systems operating in Europe.
The complaint carries a familiar ring. The US already legislates in favour of domestic industry well beyond satellites; the Buy American Act requires federal agencies to prioritise US-made goods, while the Berry Amendment mandates Pentagon preference for domestic equipment. As the saying goes: do as I say, not as I do.
Europe's perspective differs markedly. Henna Virkkunen, the European Commission's executive vice-president responsible for technology and security, said the aim is to strengthen Europe's capabilities while maintaining fair competition, noting that Europe has lost competitiveness in the space field over recent decades. The EU Space Act introduces a harmonised framework for space activities across the Union, aiming to ensure safety, resilience, and environmental sustainability, while boosting the competitiveness of the EU space sector.
This framing matters. Europe genuinely does face a fragmented regulatory landscape that hinders innovation. Europe's current regulatory landscape is fragmented with 13 different national approaches increasing complexity and costs for businesses, and the EU Space Act will create a single market for space activities, making it easier for companies, particularly start-ups and SMEs, to grow and operate across borders.
Yet the American critique also contains substance. The law is still under development and not set to take effect until January 2030, giving US operators time to adapt. But the licensing fees alone are not trivial: the initial authorisation fee for each satellite platform is expected to be approximately 100,000 euros, while for launch providers fees may range from around 200,000 euros for smaller launchers to 1.5 million euros for heavy launch vehicles.
The real issue is not whether either side has a point; both do. The question is whether this becomes another front in an escalating tech war that benefits no one, or whether it can be resolved through dialogue. The FCC is inviting interested parties to file comments that will help to shape its future policy position by April 1, 2026. That consultation period offers a window for cooler heads to recognise that protectionist escalation in space policy is ultimately self-defeating in an industry that thrives on international cooperation and shared infrastructure.