European Union (EU) regulators are examining the extent of Elon Musk’s influence and communications of his Starlink broadband-by-satellite system and whether it is a valid competitor to what could be a combined business of SES and Intelsat. SES is attempting to acquire Intelsat in a €3.1 billion deal.The EU’s anti-trust regulators have to decide whether to approve the combination or demand a more detailed examination of the scheme.The regulators have invited competitors to SES and Intelsat for comments on their combination plan.The EU sent out questionnaires to these competitors and reported by Reuters, the EU competition watchdog asked if low-earth orbit satellites, in particular such as those of Starlink and Eutelsat’s OneWeb, are credible rivals for the supply of two-way satellite capacity.The questionnaire also wanted to know if low-earth orbit suppliers are taking part in tenders and customer contracts and winning them, and how they will affect competition in the next five years.Respondents were also asked whether they have the negotiating and bargaining power to secure favourable terms and conditions when purchasing bandwidth and two-way satellite capacity from SES and Intelsat, and if they can easily switch to a rival supplier.The EU regulators will determine whether to approve the SES and Intelsat scheme by June 10th, or to initiate a more detailed examination.
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