Amazon Faces Lawsuit For Snubbing SpaceX From Project Kuiper
The delays facing Amazon’s satellite internet system, Project Kuiper, has prompted a group of shareholders to sue the company for allegedly snubbing SpaceX as a launch provider.
The lawsuit comes from the Cleveland Bakers and Teamsters Pension Fund, which holds shares in Amazon. SpaceNews reports the group filed a complaint in Delaware’s Court of Chancery that alleges Amazon’s board members “breached their most basic fiduciary responsibilities” when it came to picking the launch providers for Project Kuiper, which will span 3,236 satellites.
The pension fund argues that Amazon’s board should have considered SpaceX as a launch provider, given the company’s successful track record with transporting satellites. But Amazon’s board allegedly didn’t. Instead, it awarded the Project Kuiper contracts to Arianespace, United Launch Alliance and Blue Origin, which Amazon founder Jeff Bezos owns.
The problem is that all three companies continue to face delays with their rockets, which is stalling progress on Project Kuiper. Amazon must launch half of the satellite system by July 30, 2026, or risk losing its FCC license to operate the satellite network.
“In the face of SpaceX’s proven reliability and cost advantages, Bezos-led Amazon’s decision to not even consider SpaceX as a launch provider illustrates the glaring conflict of interest Bezos’ affiliation with both Amazon and Blue Origin presented,” the lawsuit claims.
The complaint goes on to blame Bezos’s personal rivalry with SpaceX’s CEO Elon Musk for why Amazon’s board allegedly awarded the contract to less-proven and costly launch providers. In addition, SpaceX operates its own rival satellite internet system called Starlink, which has faced resistance from Amazon in FCC
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