What Happened
Private Companies Face Increased Scrutiny And Regulation
The new space economy has brought about a significant shift in the way space activities are conducted, with private companies and investors playing a major role. As a result, new legal risks have emerged for businesses in the space sector, including disruptions, regulatory constraints, and ownership disputes. Governments are signaling that existing rules will be supplemented, not replaced, through national legislation, bilateral agreements, and nonbinding frameworks. According to Baker Donelson, businesses must plan for increased scrutiny and regulation, and consider the implications of the growing recognition of granular commercial relationships in space.