The European Commission is set to adopt a decision this week that would privilege European satellite operators, a move aimed at curbing the expansion of Elon Musk’s Starlink in Europe. Starlink currently dominates the global satellite internet market with over 10,000 low-orbit satellites, followed by Amazon’s Project Kuiper.

The strategic importance of satellite communications became clear after Russia’s invasion of Ukraine, when Starlink proved critical for Ukrainian troops. Yet Europe is wary of depending on US-controlled systems. In response, the EU is launching its own secure satellite system, IRIS², and will decide on Wednesday to allocate the 2 GHz radio spectrum frequency-the only EU-harmonized band-to European operators Viasat and EchoStar, preventing SpaceX and Amazon from expanding direct-to-device services.

This decision comes ahead of the EU’s Tech Sovereignty Package, aimed at reducing reliance on foreign tech providers. However, it risks angering Washington. Brendan Carr, chairman of the US Federal Communications Commission, warned against favoring European providers, threatening reciprocal restrictions.

The move also creates internal tensions between EU digital chief Henna Virkkunen, aligned with telecom operators, and Defence Commissioner Andrius Kubilius, who wants IRIS² to secure a slice of satellite frequencies. Balancing commercial interests, defense needs, and US relations remains a delicate challenge.