France Blocks Eutelsat's Ground Antenna Sale, Citing Strategic Sovereignty Concerns
PARIS, Jan 30 (Reuters) — In a move underscoring the geopolitical stakes of the space-based communications race, France has blocked its flagship satellite operator Eutelsat from divesting its ground antenna business. Finance Minister Roland Lescure confirmed the decision on Friday, positioning it as a necessary step to protect a key European asset.
"These antennas are dual-use infrastructure, critical for both civilian and military connectivity," Lescure stated in an interview with TF1. "As Starlink's sole European-scale competitor, Eutelsat represents a strategic sovereignty issue. The answer had to be no."
The decision, taken earlier this week, prevents Eutelsat from offloading the hardware that enables end-user communication with its satellite fleet. Analysts note the move highlights growing government scrutiny over core space infrastructure, particularly as low-Earth orbit constellations become battlegrounds for technological and strategic influence. With a 17.17% stake held by the French state, according to LSEG data, Paris retains significant leverage over the company's strategic direction.
The intervention is seen as part of a broader European effort to maintain independent capabilities in space-based connectivity, a domain increasingly dominated by U.S. giants like SpaceX and Amazon's Project Kuiper. Eutelsat, headquartered in Paris and formed from a recent merger with Britain's OneWeb, is considered a cornerstone of the EU's ambition for a sovereign space infrastructure.
Reactions & Analysis
Marie Dubois, Space Policy Analyst at Institut Montaigne: "This is a pragmatic, if expected, decision. You cannot champion European strategic autonomy while allowing the sale of critical physical assets that underpin that very autonomy. It's about controlling the entire chain, from orbit to ground."
Klaus Berger, Telecoms Consultant, Berlin: "While sovereignty is a valid concern, this heavy-handed state intervention raises questions about market dynamics and Eutelsat's commercial flexibility. Can it compete globally if its strategic decisions are subject to political veto?"
Jean-Luc Moreau, Former Air Force Communications Officer: "Finally! A government that understands this isn't just about business—it's about national security. Letting this technology slip away would have been a catastrophic failure. We're already playing catch-up; we can't afford to disarm further."
Sophie Chen, Managing Partner at Astral Venture Capital: "The signal to investors is mixed. It reinforces that space is a protected strategic sector in Europe, which may deter some investment. However, it also provides long-term stability for Eutelsat as a government-backed champion."