Amazon’s $11 Billion Globalstar Acquisition Faces Regulatory Firestorm
Amazon.com, Inc. is hitting major roadblocks after announcing its $11.57 billion acquisition of satellite telecom firm Globalstar, Inc. based in Covington, Louisiana. Regulators at the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) are reportedly intensifying scrutiny over the mammoth deal that could reshape the US satellite internet landscape.
The acquisition unfolds as Amazon struggles to meet its aggressive Project Kuiper satellite deployment goals. Since 2019, Amazon has launched only 243 of the promised 3,236 low Earth orbit satellites, trailing behind rival SpaceX Starlink, which operates nearly 10,000 satellites. This growing gap threatens Amazon’s ability to compete in the booming space race dominated by Elon Musk’s SpaceX.
Why Globalstar? Why Now?
Globalstar, founded in 1991, has long operated quietly, providing satellite communication services powering key devices like Apple’s emergency SOS feature on iPhones and Apple Watches. With over 450 employees, the company serves industries from agriculture to energy, but remains largely unknown to everyday consumers.
Amazon’s play is clear: by snapping up an established constellation, it hopes to leapfrog years of satellite network buildout and gain instant access to vital infrastructure and wireless airwaves. However, experts warn this move alone won’t solve Amazon’s fundamental problem of rocket launch capacity.
Gregory Radisic, an analyst from Bond University, says, “The gap remains structural, not just numerical, unless Amazon can solve deployment speed and launch access.” That statement references Amazon’s continued reliance on SpaceX’s Falcon 9 rockets for satellite launches because its own Blue Origin rockets, including the New Glenn, lack the cadence to support rapid constellation expansion.
Regulators Push Back Hard
The FTC and FCC are taking their time reviewing the deal amid concerns over market dominance and national infrastructure control. FCC Chair Brendan Carr has publicly criticized Amazon’s slow satellite rollout and remains cautious about granting extensions. Amazon has requested a two-year delay on its July deadline to deploy roughly 1,600 satellites, a request still under FCC review.
FCC Chair Brendan Carr told CNBC the agency is “very open-minded,” signaling tough scrutiny ahead.
The scale of the $11 billion purchase underscores Amazon’s urgency to remain competitive but raises questions about its space ambitions and leadership in satellite internet services. The deal also frames a broader regulatory showdown involving influential players like Jeff Bezos and Elon Musk, adding new drama to America’s high-stakes space race.
What’s Next?
The FTC’s extended review could delay closing the acquisition, complicating Amazon’s satellite project timeline. Meanwhile, Amazon must accelerate both satellite deployment and rocket launch capabilities to keep pace with rivals and satisfy regulatory demands. The outcome will have far-reaching consequences for the US satellite internet market and could reshape access to broadband services nationwide.
For now, Alabama and US consumers watch as tech giants and federal agencies tangle over the future of space infrastructure — a battle with enormous stakes for connectivity, commerce, and national security.
