US Congress Demands FTC Intervention in EA and Saudi Arabia Deal
A group of 46 US Congress members (primarily Democrats from the House of Representatives) has sent an official letter to the Federal Trade Commission (FTC). The lawmakers expressed "serious concern" regarding the $55 billion deal, which would result in publisher Electronic Arts (EA) coming under the control of a consortium led by Saudi Arabia's Public Investment Fund.
The congressmen point to several critical risks:
- Threat to Jobs. The $55 billion deal includes $20 billion in borrowed funds. Legislators fear that the need to service this massive debt will force EA's new leadership to conduct mass layoffs, close studios, and relocate development to countries with cheaper labor.
- Monopolization of the Labor Market. EA is one of the largest employers in the US gaming industry. Consolidation under the wing of the PIF, which already holds stakes in many other gaming giants, could lead to lower wages and limited opportunities for employees to move between companies.
- National Security and Data. The letter highlights the risk that an authoritarian government could gain access to the personal data of millions of American users and could use EA's games as a tool for propaganda or surveillance.
- Influence of Jared Kushner. The participation of the firm Affinity Partners, owned by Donald Trump's son-in-law, has drawn particular attention from the media and politicians. This adds a political dimension to the deal and raises questions about a potential conflict of interest.
If the purchase is approved, the Saudi fund will become the owner of 93.4% of EA's shares. FTC Chair Andrew Ferguson is currently refraining from comment, but pressure from Congress and labor unions makes a thorough investigation inevitable.