The president of the Communications Workers of America (CWA) union, Claude Cummings Jr., has taken a proactive stance regarding the proposed acquisition of Electronic Arts (EA) by a consortium of investors, predominantly funded by Saudi Arabia. In a series of letters addressed to the Federal Trade Commission (FTC) and the Committee on Foreign Investment in the United States (CFIUS), Cummings Jr. has called for a thorough investigation into the ramifications of this deal, particularly emphasizing concerns over job security and the safeguarding of sensitive consumer data.
Concerns Over Job Security and Market Dynamics
Cummings Jr. articulated the apprehensions of CWA members, highlighting the potential impact on thousands of jobs within the gaming industry. He urged regulators to scrutinize the implications of this acquisition, which could significantly alter the landscape of the video game sector. The union leader pointed out that the consolidation of such a major player could lead to increased vertical integration, raising questions about exclusionary practices across various business lines.
In his correspondence, Cummings Jr. stated, “As workers and consumers hoping to see the American economy strengthened and revitalized for our families, CWA members believe there are several questions the Commission should examine as it considers this high-stakes acquisition.” He emphasized the need for a careful evaluation of how this deal might affect EA’s market power, particularly in local labor markets where the company currently holds substantial wage-setting authority.
The acquisition, if approved, would see EA transitioning to private ownership under a group that includes the Saudi Public Investment Fund and Affinity Partners, an investment firm largely supported by Saudi capital. This shift raises significant concerns regarding the influence of foreign investment in a key sector of the American economy.
Interestingly, the CWA previously supported a major deal in the gaming industry—the acquisition of Activision Blizzard by Microsoft—after negotiating a labor neutrality agreement with the tech giant. This history underscores the union’s commitment to advocating for worker rights while navigating the complexities of corporate mergers and acquisitions in the gaming landscape.
