Musk’s Starlink’s role under review as EU evaluates SES–Intelsat deal

SES is looking to scale up in order to compete more effectively with U.S. heavyweights, including Starlink and Amazon’s Project Kuiper

European antitrust regulators are closely examining SES’s proposed $3.1 billion acquisition of rival satellite operator Intelsat, focusing on whether Elon Musk’s Starlink poses a credible competitive threat in the satellite communications market.

As part of its preliminary review, the European Commission has reached out to SES and Intelsat customers to assess the market impact of the deal. Specifically, the Commission is seeking input on whether low-Earth orbit (LEO) satellite providers such as Starlink and Eutelsat’s OneWeb can effectively compete with traditional geostationary satellite firms in the supply of two-way satellite capacity.

Customer responses, due by Monday, will play a key role in determining whether the Commission clears the transaction outright, requests concessions, or launches a full-scale investigation if it identifies serious competition concerns. The Commission’s deadline for a preliminary decision is June 10.

Luxembourg-based SES operates a multi-orbit fleet of around 70 satellites offering services that include video broadcasting, broadband internet, and secure government communications. Like other European satellite firms, SES is looking to scale up in order to compete more effectively with U.S. heavyweights, including Starlink and Amazon’s Project Kuiper.

The Commission’s questionnaire asks stakeholders whether LEO providers are winning tenders and securing long-term contracts, and how their presence is likely to influence market competition over the next five years. It also probes whether customers currently have sufficient bargaining power to negotiate favourable terms with SES and Intelsat, and whether switching to rival providers is a viable option.

The outcome of the review could have far-reaching implications for the European satellite industry, which is under increasing pressure to consolidate in response to the rapid expansion of U.S.-based competitors.

Monitoring Desk
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