
Space is becoming increasingly congested, contested, and critical to global economic growth. The European Union’s proposed Space Act represents one of the most ambitious efforts yet to create a unified regulatory framework governing space activities.
On September 8, 2025, Meridian International Center partnered with the U.S. Department of State and National Oceanic and Atmospheric Administration (NOAA) to host the first-ever Commercial Session as part of the 13th U.S.-EU Space Dialogue in Washington, DC. This milestone gathering marked the first time representatives from the U.S. commercial space industry joined U.S. government officials and the European Commission formally for direct talks. At the center of the discussion was the European Union’s proposed Space Act—a draft law that, if adopted, would apply not only to European operators, but also to non-EU entities providing space-based data or services within the EU.
Here are five key elements shaping the conversation:
With tens of thousands of new satellites projected in the next decade, the growth of orbital traffic raises concerns about debris proliferation and safe access to orbit. Analysts estimate that the economic consequences of disrupted access could exceed 2% of global GDP.
As reliance on space assets grows, risks are no longer limited to natural hazards or collisions. Cyber intrusions, jamming, and other hostile activities pose real vulnerabilities to satellites and ground stations alike. Addressing these challenges will require strengthening resilience measures, advancing public-private risk management frameworks, and exploring international norms that can help reduce risks without constraining innovation or responsible use of space.
One of the Act’s central purposes is to eliminate regulatory fragmentation among the EU’s 27 member states. By harmonizing licensing, liability, and safety standards, the framework aims to provide legal clarity for operators, reduce barriers to entry, and boost European competitiveness on the global stage.
The draft regulation underscores the importance of balancing the needs of large operators with those of emerging startups and small- to medium-sized enterprises (SMEs). By scaling compliance requirements and exploring supportive measures for new entrants, the framework seeks to encourage innovation and entrepreneurship while maintaining high safety and sustainability standards. This approach recognizes that SMEs are a vital part of Europe’s commercial space ecosystem and an important source of technological dynamism.
The Act explicitly excludes defense and national security activities. Furthermore, it is not slated to take effect until January 1, 2030. The legislative process itself is expected to take at least two years, providing ample time for refinement, input, and alignment with international standards.
While the Commercial Session was off the record and we will not report on specifics, a previously reported concern surrounds the requirement to obtain licenses, appoint EU-based legal representatives and comply with EU standards for non-EU operators. There is worry that this could become burdensome for the commercial space sector and complicate international cooperation, especially in the absence of equivalence agreements. Furthermore, while the Act allows for equivalence decisions to recognize non-EU regulatory regimes, it remains unclear how these will be applied.
The inclusion of a commercial session in this year’s Dialogue marked a milestone, offering a rare venue for government officials and private sector representatives to exchange perspectives on the draft EU Space Act. The discussion surfaced broad themes relevant to industry worldwide, such as the importance of clear definitions within the regulatory text, the balance between harmonized rules and national sovereignty, and the potential impact of licensing frameworks on both established companies and new entrants.
Participants also explored questions around technical standards, the scalability of compliance obligations, and how to avoid creating unnecessary barriers to entry. These conversations underscored the value of a multistakeholder approach that incorporates the insights of operators, innovators, and policymakers alike.
By framing the EU Space Act as a working document still under development, the Dialogue highlighted the opportunity for continued consultation and refinement. While this was the first commercial session held under the Dialogue, the inclusion of private sector and U.S. government voices set the stage for deeper engagement in the years to come.
| 13th U.S.-EU Space Dialogue Commercial Session | September 2025 | |
|---|---|
| Impact Areas: | Science and Technology |
| Program Areas: | Technology, Innovation, & Space |