The Sale of Electronic Arts to Saudi Arabia is on the Agenda of the US Congress
The sale of Electronic Arts to the Saudi Arabian Public Investment Fund (PIF) has become the focus of political debate in the United States. A group of lawmakers, including more than 40 members of Congress, are demanding stricter oversight of the process due to its potential impact on workers in the gaming industry.
Electronic Arts Sale Worries Congress
Leaders of the Labor Caucus in the US Congress sent a letter to Federal Trade Commission (FTC) Chairman Andrew Ferguson requesting a thorough review of the Electronic Arts sale. The letter emphasizes that this acquisition could have serious consequences for the US labor market and competitive environment.
Legislators point out that the video game industry is already struggling with layoffs, shrinking opportunities, and uncertainty. They note that Electronic Arts is one of the largest companies in the US, employing thousands of game developers, and already holds a strong position in terms of wage setting.
Furthermore, the deal reportedly includes plans to add approximately $20 billion in debt to EA’s balance sheet. According to members of Congress, this could encourage the new owners to resort to further layoffs, studio closures, and overseas operations to offset the costs.
Referring to the FTC’s 2023 merger and acquisition guidelines, they remind everyone that deals that harm workers or reduce labor demand could violate antitrust laws. They argue that this sale, valued at $55 billion, should be subject to much stricter oversight to protect the rights of workers in the American gaming industry.
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