The real answer here, which the FCC just shoved right to the forefront, is that there should be a single international independent body to sign off on a debris analysis on all items placed in space. But then again, no country wants that because they either want the control for themselves or thrive on the gray area.
For the commercial launch industry, they don't want that either because most of them leave their spent rocket bodies up there (which are basically big rusting tanks with unspent fuel vapors). For the big old space, they don't want it either because they would be forced to admit that they have a fiscal responsibility to operate their satellites until they die and that their active-deorbit plans are bullshit.
What shocks me is that neither Spaceflight nor ISRO checked on the license. This is why you have mass dummies (big hunks of metal that approximate the satellite that can be launched in their place).
On top of that, shame on the CEO of Swarm. You could make the argument that she set trust in the industry back by years. She should pack it up. You don't get to ask for forgiveness instead of permission when you're playing in space. It belongs it everyone.
(Which question, btw, shows the need for an international regulatory agency like you're describing.)
It's been a long-standing ethical concern that the breakaway startups succeed by asking for forgiveness (e.g. ride sharing and room letting). Who is to decide that space is any different? And when the technicality is based on radio-waves, why RF spectrums more sacred than housing laws?
Of cause there is little incentive to to create such agencies as long as the FCC is taking care of it well.
It's the FAA regulations that cover passenger issues.
https://www.usatoday.com/story/news/2017/04/10/voice-call-ba...
The USAF/NORAD operates the US feds' space tracking functionality but is not set up to regulate things, they provide Secret and TS level data to agencies like the NRO and other parts of the USAF (for missions like the X-37), but I don't think the USAF spacetrack agency has any regulatory authority. Probably it should have such, if this sort of thing continues.
Do you think the FCC should be able to make safety regulations for, say, airplanes or sailboats?
The skeptic in me says it is so that the government can grant monopolies to people like Lyndon Johnson who own radio stations so that they can become very wealthy. Then when they become President (or hold other positions of power), they scratch the backs that scratched theirs.
That shouldn't be the end of the discussion, though. Why didn't the FCC grant Swarm a license in the first place? Basically, the FCC claims the right to take action to minimize the danger of orbital debris created by US-operated satellites. [1] According to the FCC, this jurisdiction is granted by the Communications Act of 1934. [2] But that requires a very broad interpretation of the law. If promoting "the larger and more effective use of radio in the public interest" lets the FCC make regulations about orbital debris, then surely it also applies to just about anything that has a radio.
I don't like what Swarm did here -- I think they are legitimately endangering other satellites -- but I don't like the precedent the FCC is setting either. This seems like a classic case of bureaucratic overreach to me.
Primary sources:
[0] Swarm's license application: https://apps.fcc.gov/oetcf/els/reports/442_Print.cfm?mode=cu...
[1] FCC experimental license rules, section 5.64: http://www.fr.com/files/Uploads/attachments/fcc/FCC_Part%205...
[2] "Mitigation of Orbital Debris", section (III)(A): https://apps.fcc.gov/edocs_public/attachmatch/FCC-04-130A1.p...