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CWA president urges regulators scrutinise EA Saudi deal

CWA president urges regulators scrutinise EA Saudi deal

The president of the Communications Workers of America (CWA) union, Claude Cummings Jr, has urged regulators to look into the deal to take Electronic Arts private. 

In letters to both the Federal Trade Commission (FTC) and Committee on Foreign Investment in the United States (CFIUS) to investigate the deal, specifically due to concerns he has about "thousands of jobs and sensitive consumer data". 

If the deal is approved, Electronic Arts is set to be taken private by a group of investors, but nearly entirely by Saudi Arabia; the new owners include the Saudi Public Investment Fund and Affinity Partners, an investment firm almost entirely backed by Saudi money.

"As workers and consumers hoping to see the American economy strengthened and revitalised for our families, CWA members believe there are several questions the Commission should examine as it considers this high-stakes acquisition," Cummings Jr wrote. 

"In particular, the implications regarding consolidation in the video game industry, increased vertical integration and the potential for greater exclusionary conduct across multiple related business lines, potential interlocking directorates, and the impact of the acquisition on EA’s market power in local labour markets in light of EA's current wage-setting power." 

Incidentally, CWA backed the last major deal in games – Microsoft's acquisition of Activision Blizzard – after striking a labour neutrality agreement with the Xbox firm. 


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PCGamesInsider Contributing Editor

Alex Forbes-Calvin is a freelance writer and photographer, mostly operating within the games industry. Over his career, he has written for the likes of MCV, Eurogamer, GamesIndustry.biz, The Observer, VGC and Esquire. That's on top of writing books for Dark Horse on RuneScape, Assassin's Creed, Dead Island 2 and more.