A Canadian labor union is urging the Canadian government to investigate the acquisition of Electronic Arts Inc., a major video game company, by a consortium of buyers that includes the Saudi Arabian sovereign wealth fund and a private equity firm owned by Jared Kushner, son-in-law of U.S. President Donald Trump. The Communications Workers of America Canada is concerned about potential risks to national security and jobs if the deal goes through.
Electronic Arts has been active in Canada since 1991, with five offices across the country contributing significantly to the success of the company’s popular soccer and hockey games, as well as the broader Canadian video game industry. The union is worried that the sale of EA could have negative implications for the industry, especially given recent layoffs by EA’s competitor Ubisoft and the acquisition of Activision Blizzard by Microsoft.
CWA Canada President Carmel Smyth expressed concerns that the acquisition could lead to stifled competition and job losses in the industry. The union has reached out to Industry Minister Mélanie Joly and the Competition Bureau to request a review of the transaction under the Investment Canada Act and Competition Act to safeguard national interests and prevent potential harm to the Canadian economy.
There are apprehensions that the deal could allow access to sensitive personal information of Canadians by foreign entities, raising concerns about data privacy and security. The union emphasized the importance of regulatory oversight and transparency, especially considering the involvement of Saudi Arabia in the acquisition.
While EA did not respond to requests for comment on the union’s concerns, the consortium behind the deal has stated that the transaction is subject to approval from shareholders and regulators and is expected to close in the first quarter of EA’s fiscal year 2027. The Competition Bureau has completed its review of the merger, with the outcome listed as “other,” indicating a unique resolution that does not align with typical cases.