The European satellite industry is preparing for a major transformation with a new strategic partnership that could create a strong competitor to Elon Musk's Starlink. However, the move has sparked concerns over potential breaches of competition rules and doubts about its viability.

Three leading companies—OneWeb, Eutelsat, and SES—have teamed up to develop a satellite network capable of rivaling Starlink’s dominance in the satellite broadband market. This collaboration is seen as a key step in reducing Europe's reliance on US-based satellite providers and strengthening the continent’s control over space-based communications. However, some industry figures have raised alarms over possible anti-competitive consequences and their impact on the broader market.

Marco Fuchs, CEO of OneWeb, expressed his concerns in an interview with Politico:

"We are worried about this partnership, as it affects our sourcing, supply chain, and overall operations. From an antitrust perspective, I don’t believe creating a monopoly is either feasible or desirable."

The proposed alliance aligns with the European Union’s broader goal of establishing an independent satellite broadband alternative to Starlink, which has become the leading provider worldwide.

Starlink has been especially crucial in Ukraine, offering internet access to both civilians and the military in areas where traditional infrastructure has been destroyed. This service has been a lifeline, ensuring communication despite the ongoing Russian invasion.

In January, Italian Prime Minister Giorgia Meloni supported the idea of a European satellite alternative but cautioned against monopolistic tendencies. She stated:

"Europe’s independent presence in space is essential for our security and economic future. However, we must ensure that new initiatives do not undermine the principles of fair competition that define the European Union."

The European Commission has echoed similar concerns. That same month, President Ursula von der Leyen emphasized the importance of maintaining a competitive market in satellite communications:

"We need to balance fostering innovation with preventing anti-competitive behavior. The EU remains committed to ensuring a fair and open single market, which is crucial for economic growth and consumer protection."

While the EU aims to strengthen its position in the satellite sector, questions remain over whether this partnership will preserve market competition. Starlink’s rapid expansion has already reshaped the industry, and regulators will need to assess whether the European consolidation could stifle future innovation and limit consumer choice.

The outcome of regulatory reviews will have far-reaching implications for both the satellite communications sector and the EU’s broader ambitions in space. If approved, this partnership could mark a decisive shift in the race for dominance in the satellite internet market.