Italy's parliament rejects 'anti-Musk' amendments to space bill

ROME (Reuters) - Italy's parliament on Thursday rejected opposition amendments trying to prevent the government from acquiring satellite services from companies outside the EU, which a representative from Starlink had denounced as 'anti-Musk' moves.

The draft bill, which needs approval from both houses of parliament, will make it possible to transmit Italian communications only through satellites owned by operators belonging to the EU or to the Atlantic Alliance (NATO).

Lawmakers from the main centre-left opposition Democratic Party (PD) had proposed further limitations as the government moves to ensure diplomats and officials have access to secure satellite communications while operating in risky areas.

The PD sought to impose that satellites be handled by subjects based outside the EU only if it was impossible to do otherwise, while making sure Italy had "exclusive ownership and control of the encryption and the software and hardware components used by the service provider."

Prime Minister Giorgia Meloni's ruling parties have opposed both proposals.

U.S. company Starlink, part of Elon Musk's SpaceX business, is among the top contenders for a government contract for such services, but the opposition has questioned the wisdom of working with a company owned by the tech billionaire and ally of U.S. President Donald Trump.

Andrea Stroppa, a representative for Musk in Italy, said last month the PD was waging an "anti-Musk crusade" and warned Starlink was not "a toy for the politicians."

Reuters reported on Wednesday that Franco-British satellite operator Eutelsat is also among companies in talks with the Italian government over secure communications.

"We demand guarantees for the use of Italians' public money," said Andrea Casu, the PD lawmaker who proposed the amendments.

(Reporting by Giuseppe Fonte and Angelo Amante; Editing by Keith Weir)