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EU Regulators Probe SES-Intelsat Deal, Seek Insight on Starlink’s Competitive Threat

By  |  May 12, 2025

European antitrust authorities are taking a closer look at SES’s proposed $3.1 billion acquisition of Intelsat, launching a market probe to assess whether emerging satellite internet providers, particularly SpaceX’s Starlink, pose a credible threat to traditional operators in the sector.

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    According to Reuters, the European Commission — the EU’s executive arm — has reached out to customers of both SES and Intelsat with a detailed questionnaire. The inquiry aims to determine how low-earth orbit (LEO) satellite networks, such as Starlink and Eutelsat’s OneWeb, are impacting the satellite communications landscape.

    The responses, which are due by Monday, will play a critical role in the Commission’s decision-making process. Depending on the feedback, the Commission may either approve the deal unconditionally, require concessions from the merging parties, or initiate a more in-depth investigation if significant concerns are raised, per Reuters.

    SES currently operates a fleet of about 70 satellites in multiple orbits, offering a range of services including video transmission, broadband internet, and secure government communications. The company, like other European satellite providers, is seeking to scale up its operations in order to better compete with fast-expanding U.S.-based rivals such as Starlink and Amazon’s Project Kuiper.

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    In the questionnaire seen by Reuters, regulators asked customers to evaluate whether LEO satellite providers are realistic alternatives for acquiring two-way satellite capacity. Additionally, the Commission is examining whether these newer entrants are actively competing for — and winning — commercial contracts, and how they are expected to shape market dynamics over the next five years.

    The Commission also sought to understand customers’ bargaining power when negotiating with SES and Intelsat, and how easily they could switch to other suppliers. The outcome of the preliminary review is expected by June 10.

    The SES-Intelsat merger comes amid growing efforts by the European Union to reduce dependence on U.S. satellite infrastructure and bolster its own technological capabilities in the space sector. Whether the proposed consolidation will face regulatory hurdles may hinge on how convincingly LEO competitors are viewed as a counterbalance in the evolving market.

    Source: Reuters