NSA Spying Fallout Hits French Satellite Deal

from the guilt-by-association dept

Techdirt has already noted how the NSA's massive spying programs around the world are costing US companies money through lost business -- and are likely to cost them even more in the future. But it seems that the fallout is even wider, as this story from The Voice of Russia makes clear:

The sale of two intelligence satellites by France to the UAE [United Arab Emirates] for nearly $1bln could go bust after the satellites were found to contain US technology designed to intercept data transmitted to the ground station.

A top UAE defence source said that the satellites contain specific US-made components designed to intercept the satellites' communication with their accompanying ground station.

As a result, the UAE might do a deal with the Russians instead:

An unnamed UAE defence source said that it is not clear if the US equipment can be taken off the French satellites, so the incident has resulted in an increase of talks with Moscow, which, along with Beijing, has also been a frequent defence technology supplier to the Emirates.

So it seems likely that not only will US companies find it hard to sell their wares directly to nations that are worried about possible surveillance, but foreign manufacturers will also be reluctant to include certain types of US technology in their own products, since that might cost them contracts. The price being paid by US businesses for the NSA's "collect it all" approach continues to rise.