EU antitrust regulators are to investigate the planned purchase of French rocket company Arianespace by a consortium led by aeronautics maker Airbus and French-based rocket engine specialists Safran, over concerns the new entity would have too much market power in the satellite industry.
The move follows a preliminary investigation that raised concerns about higher prices, less customer choice and a reduction in research and development investment in satellite and launcher markets.
"A competitive space industry has a crucial role in strengthening the EU's industrial base and boosting our global competitiveness,” said EU Competition Commissioner Margrethe Vestager. “The Commission therefore needs to make sure that all players in the space industry continue to have strong incentives to innovate.”
Arianespace is the dominant player in its market in Europe and a contractor to the European Space Agency, but in the last few years it has faced aggressive competition from launchers produced by Elon Musk’s US-based SpaceX.
The EU competition authority will decide by July 12 whether to approve the purchase.
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