Space Arbitration: Mexico Reportedly Avoids Liability In Satellite Dispute With Eutelsat

On 15 September 2021, the Mexican Ministry of Economy reported that it had successfully defended a claim brought by satellite giant Eutelsat in an arbitration before the International Centre for Settlement of Investment Disputes ("ICSID").

According to media reports, Eutelsat's claim related to the obligation Mexico had imposed on SatMex - which Eutelsat purchased in 2014 - to reserve portions of its satellite spectrum for guard bands and for Government use. The arbitration was reportedly commenced by Eutelsat in August 2017 under the France-Mexico bilateral investment treaty. Relying on the broad protections available in that treaty, Eutelsat had argued that the Government's spectrum allocation obligations discriminated against its investment as compared to competitors. According to the Mexican Government, the tribunal recently dismissed those claims, with costs awarded to Mexico.