Proposed Acquisition of Electronic Arts: Labor and Market Competition Review

This correspondence from members of the Congressional Labor Caucus urges the Federal Trade Commission to conduct a rigorous antitrust review of the proposed acquisition of Electronic Arts (EA) by the Public Investment Fund, Silver Lake, and Affinity Partners. The primary thesis is that the transaction threatens to exacerbate labor market concentration, suppress wages, and jeopardize high-skilled American jobs within the video game industry. The signatories argue that the merger could facilitate anticompetitive practices, including wage suppression and restricted worker mobility, while creating incentives for aggressive cost-cutting measures such as layoffs and offshoring.

The analysis highlights significant instability within the U.S. video game labor market, noting that over 35,000 industry-wide layoffs have occurred since 2022, with EA alone eliminating more than 1,700 positions since 2023. The document points to a decline in median worker pay at EA as evidence of existing wage-setting power and limited competitive pressure. Furthermore, the acquisition’s reliance on at least $20 billion in debt financing is identified as a catalyst for potential future restructuring and studio closures.

Beyond direct labor impacts, the document emphasizes risks associated with vertical integration and cross-industry leverage. The acquiring firms maintain extensive ownership stakes in sports leagues, betting platforms, and talent management agencies, which could lead to self-preferencing and coordinated anti-labor dynamics. By combining EA’s market dominance with these external assets, the merger may create interlocking directorates that further diminish the bargaining power of software engineers, artists, and other industry professionals. The signatories conclude that the Commission must evaluate these risks under its 2023 Merger Guidelines to ensure the protection of a fair and competitive labor marketplace.