CWA urges federal review of $55bn PIF-led EA buyout

• The union cited risks tied to labour competition, national security, and foreign access to player data and AI technology
• The letter also flagged potential antitrust violations through overlapping board memberships among competing firms.
• Cummings urged the FTC to examine whether PIF or Savvy executives joining EA’s board would breach US law.
• He warned that the buyout would hand control of a key American game company to a small circle of foreign investors.

The Communications Workers of America has urged the Federal Trade Commission and the Committee on Foreign Investment in the US to conduct a full review of the proposed buyout of Electronic Arts.

In two separate letters, CWA president Claude Cummings Jr warned that the $55 billion PIF-led buyout of EA could harm workers, consumers, and the stability of the US games industry.

Cummings also cited risks such as reduced labour market competition from further industry consolidation, potential exploitation of American workers, and national security concerns over foreign access to US players’ personal data and EA’s AI technology. 

The union also raised competition risks arising from the buyers’ overlapping ownership stakes in companies that compete or do business with EA, arguing that such cross-ownership could distort fair competition across the games industry.

Antitrust concerns

In the letter sent to the FTC, Cummings said the proposed EA buyout could lead to illegal interlocking directorates, where the same individuals sit on the boards of competing companies, something prohibited under US antitrust law.

He pointed out that the CEO of PIF-owned Savvy Games Group already serves as chairman of Scopely and as a director at Embracer Group, both major players in the games industry. 

Since PIF and Savvy have invested in or fully acquired these companies, he warned that their executives might also join EA’s board if the deal goes through. 

He urged the FTC to investigate who would serve on EA’s board post-acquisition and to determine whether any of those roles would violate antitrust rules or enable collusion between competitors.

“This deal is not about innovation or growth for the US economy - it’s about handing control to a small group of powerful investors and putting thousands of jobs and sensitive consumer data at risk,” said CWA president Claude Cummings Jr. 

“I’m calling on CFIUS Chair Scott Bessent and FTC Chairman Andrew N. Ferguson to scrutinise this deal carefully and to ensure that this deal protects American workers, consumers, and the future of the video game industry.”

The union’s intervention follows concerns from two US senators, Richard Blumenthal and Elizabeth Warren, who raised national security concerns over Saudi Arabia’s role in EA’s $55bn buyout.