An Ohio-based pension fund has filed a lawsuit against Amazon, claiming that the company failed to consider SpaceX as a potential launch provider for its Project Kuiper satellite constellation, which competes with SpaceX’s Starlink network. The lawsuit alleges that Amazon’s board of directors, including founder Jeff Bezos, acted in bad faith when they selected other providers, including Bezos’s own space venture Blue Origin, but excluded SpaceX from the contracts. The lawsuit suggests that SpaceX’s proven reliability and cost advantages were ignored in favor of Bezos’s personal interests.
The pension fund states that Amazon has spent nearly $1.7 billion on the launch agreements with Blue Origin, Arianespace, and United Launch Alliance. The fund questions whether Amazon will be able to meet the federally mandated deadline to deploy half of its planned 3,236 satellites by mid-2026. It argues that Amazon’s decision not to consider SpaceX demonstrates the conflicts of interest present within the company. The lawsuit seeks damages, legal costs, and disgorgement of profits obtained through breaches of fiduciary duties.
Amazon has responded, stating that the claims in the lawsuit are without merit and that they will defend their position through the legal process.
While Amazon is still on track with the development of Project Kuiper, no satellites have been launched yet. In contrast, SpaceX has already launched thousands of Starlink satellites and claims to have over 1.5 million subscribers. Amazon plans to launch its first two prototype satellites using United Launch Alliance’s Atlas V rocket and begin mass production by the end of this year.
The potential conflict of interest between Bezos’s roles at Amazon and Blue Origin has long been a concern. It remains to be seen if further details will emerge during the legal proceedings. In the past, Amazon executives have referred to SpaceX as a potential launch provider for Project Kuiper.
Sources:
– Space News: [redacted URL]
– CNBC: [redacted URL]
The post Amazon Faces Lawsuit Alleging Unfair Treatment of SpaceX in Satellite Launch Contracts appeared first on TS2 SPACE.
