Democratic members of the US Congress have called on the Federal Trade Commission to thoroughly examine the proposed $55 billion acquisition of Electronic Arts by Saudi Arabia's Public Investment Fund and other investors. The letter from the Congressional Labor Caucus highlights concerns over labor impacts and market dominance in the gaming industry. The deal, announced last September, is set to close in early 2027.
In a letter dated recently, 46 House Democrats from the Congressional Labor Caucus urged the Federal Trade Commission to conduct a detailed review of Electronic Arts' (EA) impending $55 billion sale. The acquisition involves the Public Investment Fund, Saudi Arabia's sovereign wealth fund, alongside Silver Lake and Affinity Partners. EA confirmed the transaction in September, with closure anticipated in the first quarter of 2027.
The lawmakers expressed worries about the deal's effects on the gaming sector, which they described as unstable. Key concerns include potential layoffs following the transaction, EA's wage-setting influence, labor market concentration in specific regions and job types, and the broader implications of cross-ownership on worker outcomes. "We respectfully urge the Commission to conduct a thorough investigation into the labor market consequences of this proposed acquisition, including EA’s existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labor-market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labor outcomes," the letter stated.
The initiative has garnered backing from labor groups. The Communications Workers of America has endorsed the letter, while the United Video Game Workers union launched a petition, as noted by Eurogamer. That petition presses regulators and officials to "scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom."
This push for oversight reflects growing scrutiny of major mergers in tech and entertainment, particularly those involving foreign state funds, amid fears of reduced competition and worker protections.
