EA's Saudi Buyout Gets Political: 46 Dems Demand FTC Probe Over Layoff Fears and Labor Market Control

46 House Democrats led by Reps. Steven Horsford and Debbie Dingell sent a letter to FTC Chair Lina Khan demanding a "thorough investigation" of the Saudi-led buyout of Electronic Arts.

The letter cites "serious concerns" over potential layoffs (1,700+ jobs cut since 2023), studio closures, wage suppression, and "coordinated anti-labor practices" in the gaming industry.

The letter explicitly references the FTC's 2023 Merger Guidelines, stating: "The Guidelines make clear that mergers harming workers by reducing pay, benefits, or employment opportunities may violate antitrust laws." It also highlights risks associated with leveraged buyout structures, which historically have led to studio closures and workforce reductions at game studios like BioWare and THQ.

"The transaction also raises serious concerns about interlocking directorates and common ownership across competing game publishers," the letter states, citing potential antitrust violations in labor markets.

Political context adds complexity: FTC Chair Lina Khan has faced scrutiny for her regulatory approach, while the acquisition consortium includes Saudi Arabia's Public Investment Fund and private equity firms.

The letter also notes potential impacts on games with LGBTQ+ representation, though no specific titles are named.