EU Space Act Faces Accusations of Anti-American Bias

Innovation at Risk as Proposed Regulations Target U.S. Industry, Critics Claim

A proposed European Union Space Act (EUSA) is drawing sharp criticism, with claims that its provisions unfairly burden American satellite companies and stifle innovation. The Information Technology and Innovation Foundation argues the regulations are “gerrymandered” to disadvantage U.S. firms while exempting their European counterparts.

Targeted Regulatory Burdens Highlighted

The foundation points to several key areas where the EUSA allegedly imposes discriminatory costs. One concern is the creation of a “giga-constellation” category, which applies additional regulatory burdens on satellite propellant capacity. Currently, only American companies operate or plan such large constellations. This distinction is deemed arbitrary, as propellant needs are not inherently tied to constellation size.

Another point of contention is the proposed reflectivity rules for satellites. These standards are reportedly set below the capabilities of current low-earth orbit technologies, which are crucial for low-latency services. Critics argue this requirement disproportionately affects U.S. constellations, which operate at lower altitudes and are thus more reflective from Earth’s perspective, unlike higher-altitude EU constellations.

Market Access and Launch Services Under Scrutiny

The EUSA also faces criticism for its market access procedures. Non-EU satellite operators are subjected to a more complex “Compliance Board” review process compared to EU operators who can secure authorization domestically. This is seen as an additional bureaucratic hurdle with potential conflicts of interest.

Furthermore, the act’s launch derogation regime is criticized for explicitly favoring EU launch providers. EU operators can only use non-EU launchers under strict conditions, such as the absence of a “readily available substitute” within the EU or if the foreign launch supports strategic EU technological development. This provision is seen as undermining U.S. launch competitiveness and potentially forcing European operators to use less optimal or more expensive options.

Echoes of Past Tech Regulations

This EUSA proposal is drawing parallels to previous EU regulations targeting U.S. technology firms. The foundation cites the Digital Markets Act and the Digital Services Act, which critics argued imposed disproportionate burdens on American companies. The fear is that the EUSA could initiate a similar “Brussels effect,” leading to the global proliferation of discriminatory space regulations.

As of early 2024, the global satellite internet market is projected to reach $12.5 billion by 2028, with significant growth driven by constellations like those operated by U.S. companies (Statista 2024).

Call for Even-Handed Regulation

The Information Technology and Innovation Foundation urges the United States to oppose the EUSA in its current form. The organization advocates for space safety regulations that are “evidence-based and even-handed.” The concern is that the proposed framework could hinder technological advancement and negatively impact consumers worldwide.