Can Europe Break Americans' Space Monopoly Through the Bromo Project?

The European Union is seeking rapid approval – regarding antitrust laws – for a project in the satellite sector that is seen as the European response to the American company "SpaceX"; this follows intensive discussions with the project's partners: "Leonardo," "Airbus," and "Thales," according to an informed source.

The source told Bloomberg agency that discussions held over the past year focused on identifying and addressing any potential competition concerns, prior to formally submitting the project for approval.

The source added to the agency that although the companies involved have not yet submitted their application, EU officials expect this to happen within the coming weeks.

The plan aims to establish a company that would help Europe reduce its reliance on American satellite service providers, such as Elon Musk-owned SpaceX.

The project has faced opposition from labor unions and suppliers who expressed concerns about job opportunities and competition. This project will also be one of the first tests of the EU's updated approach toward mergers, an approach that has become more inclined to support the emergence of giant regional entities capable of competing with their American and Chinese counterparts.

Bloomberg states that in the case of major deals – such as the "Bromo" deal (Project Bromo) – regulators usually engage in detailed conversations before formal notification, in order to resolve any potential obstacles.

Practically speaking, the deal could be approved quickly – i.e., after what is known as "Phase I review" which takes slightly more than a month – if the companies offer concessions, such as divesting certain assets.

If competition concerns remain, EU regulators can conduct an in-depth investigation lasting several months, before making a final decision on approving or rejecting the mergers.

Last month, European Commission President Ursula von der Leyen referred to "Project Bromo" as a model for leading industrial entities that Europe needs to lead the scene in the future space economy. Her remarks sparked criticism from some members of the European Parliament.

However, Teresa Ribera, the EU Commissioner for Competition, warned that the project would not receive exceptional treatment or exemption from scrutiny by the relevant competition regulatory bodies.