The European satellite industry is gearing up for a shake-up with a new strategic partnership that could create a significant rival to Elon Musk’s Starlink. But the move has raised concerns over potential competition rule breaches and questions about its feasibility.
Three major companies – OneWeb, Eutelsat, and SES – have joined forces to build a satellite network capable of challenging Starlink’s dominance in the satellite broadband sector. The alliance is seen as a crucial step towards reducing Europe’s dependence on US-based satellite providers and asserting greater control over the continent’s space-based communications infrastructure. However, the move has raised red flags among some industry leaders, who warn that it could lead to anti-competitive practices and harm the wider market.
Marco Fuchs, CEO of OneWeb told Politico: “We are concerned about that partnership, it impacts our sourcing, supply chain and everything.
“I don’t think in terms of antitrust it’s possible or desirable to create a monopoly.”
The mooted alliance between OneWeb, Eutelsat, and SES is part of a broader European Union effort to establish a sovereign alternative to Starlink, which has rapidly become the go-to satellite broadband service worldwide.
Starlink, the tech billionaire’s satellite internet company, has played an especially crucial role in Ukraine. It provides internet access to both the military and civilians in war-torn areas where traditional infrastructure has been destroyed.
This service has been a lifeline for communication, keeping Ukrainians connected despite Russia’s ongoing invasion.
In January, Italian Prime Minister Giorgia Meloni lent her support to the idea of creating a European satellite alternative but voiced concerns about the potential for monopolistic behaviour.
She told reporters: “The need for an independent European space presence is critical for the security and economic future of our continent.
“However, we must ensure that new ventures do not compromise the principles of free competition and fairness that underpin the European Union.”
The European Commission has similarly expressed its concerns about market competition.
Also speaking in January, President Ursula von der Leyen stressed the importance of preserving fair competition within the satellite communications sector.
She said: “We need to strike a balance between fostering innovation and preventing anti-competitive practices.
“The European Union has a longstanding commitment to a competitive single market, which is key to both economic growth and the protection of consumers.”
While the EU’s strategic partnership aims to reduce Europe’s reliance on US-based companies, the arrangement has raised questions about whether the satellite broadband market will remain competitive.
Starlink’s rapid expansion has already altered the global landscape, and regulators will need to consider whether the European consolidation might hinder future innovation and consumer choice.
As European regulators assess the partnership, the outcome will have significant implications for both the satellite communications industry and the EU’s broader ambitions to strengthen its presence in space.
If the deal goes ahead, it could mark a pivotal moment in the race for dominance in the growing satellite internet sector.
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