Public–Private Partnerships in Space: National and International Legal Dimensions in the USA and Europe

Abstract

The increasing commercial involvement in space activities has fundamentally reshaped the dynamics between governmental and private entities engaged in space exploration and utilization. Public-Private Partnerships have become a crucial method for balancing public interests, fostering technological advancements, and attracting private investment in this developing sector. This paper, titled “Public–Private Partnerships in Space: National and International Legal Dimensions in the USA and Europe,” offers a comparative examination of the legal and institutional structures that facilitate PPPs within two prominent spacefaring regions: the United States and Europe. By referencing international commitments outlined in the Outer Space Treaty, the Liability Convention, and related agreements, the study assesses how national legislation in these areas—including the U.S. Commercial Space Launch Competitiveness Act, France’s Space Operations Act, the U.K. Space Industry Act, and Luxembourg’s Space Resources Law—implement state accountability and oversight for private space ventures. Furthermore, it investigates how evolving international frameworks, such as the dichotomy between the U.S.-led Artemis Accords and the Chinese-Russian International Lunar Research Station initiative, influence the regulatory landscape for private actors and the overall governance of outer space (Hasin, 2022).

The analysis highlights significant differences in the structuring of Public-Private Partnerships: the United States adopts a procurement-centric strategy aimed at market acceleration, drawing upon NASA's Space Act Agreements and performance-based contracts, whereas Europe favors an authorization-centric model driven by the European Space Agency and its industrial policy, emphasizing state-led development and regulatory oversight. Special attention is directed toward the allocation of liability, insurance frameworks, and the legal status of space resources, with specific case studies illustrating how legal determinations influence private sector engagement. The paper also examines how these distinct legal and policy approaches affect the competitive landscape and the pace of innovation within the commercial space sector.

The results highlight crucial compromises between adaptability and supervision, fostering innovation versus managing risks, and aligning national industrial objectives with adherence to global treaties. The paper also identifies emerging issues, such as the regulation of in-orbit servicing, space resource extraction, and extensive satellite constellations, necessitating flexible PPP structures. Building upon this comparative analysis, the study proposes recommendations for developing robust legal frameworks for PPPs that are internationally responsible and promote sustainable space commercialization. By contextualizing U.S. and European practices within the broader landscape of international space law, the paper emphasizes the necessity of coherent principles that balance competitive dynamics with accountability in the global space economy. Moreover, the inherent challenges associated with space as an open-access resource, particularly concerning the potential for a "tragedy of the commons," necessitate refined governance mechanisms to prevent unregulated exploitation and ensure sustainable development (Rausser et al., 2023). This is particularly critical given the increasing number of state and private actors involved in space activities and the lack of clear international consensus on the management of space resources and activities (Korpershoek, 2023) (Wiser & Aganaba, 2022).