The President of CWA Canada Has Called on the Federal Government to investigate the $55 Billion EA Buyout.
President of the Communications Workers of America (CWA) Canada, Carmel Smyth, has called upon the Canadian government to investigate the $55 billion EA buyout by the Saudi Arabian PIF, Jared Kushner’s Affinity Partners, and Silver Lake. In a letter to Canadian Minister of Industry Mélanie Joly, Smyth said, “The structure of the proposed acquisition puts the thousands of Canadian EA workers at increased risk”, among other concerns raised. Electronic Arts has a large presence in Canada with 5 locations across the country, with offices in Vancouver, Toronto, Victoria, Montreal, and Edmonton. This new call for scrutiny follows similar actions taken by 46 US House members in a recent letter to the US Federal Trade Commission.
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Canada’s Cause for Concern
The call for action from the CWA echoes similar concerns raised by other groups, such as the recent US House letter to the FTC, and the Players Alliance HQ, the group currently petitioning the US government to investigate (and hopefully halt) the sale.
Among the three investment groups seeking to purchase EA in the landmark $55 billion deal is Saudi Arabia’s Public Investment Fund (PIF), the sovereign fund of Saudi Crown Prince Mohammed bin Salman. Many have voiced concern over Saudi Arabia’s involvement due to the state’s previous human rights record and international relations. In Smyth’s letter to the Canadian Minister of Industry, she highlighted the power that Mohammed bin Salman holds:
[…] it is also highly relevant that, because the deal would put EA under the near-absolute control of PIF, not only would EA be closely economically integrated with the Saudi Arabian government, but control would effectively be solely in the hands of Crown Prince Mohammed Bin Salman, the unelected monarch of a country with, at best, a very different approach from Canada to personal autonomy and privacy and at worst a highly troubling record of human rights abuses including surveillance and misuse of information.
National Security Fears
Not only is the CWA concerned about Saudi Arabia’s human rights record, but they are also worried about the threat that sovereign control by a foreign power could pose to national security. Smyth said:
Saudi Arabia could utilize its access to Canadians’ personal information for purposes of mass surveillance, censorship, or propaganda, and we are highly skeptical Saudi Arabia would engage in these activities in a manner that is consistent with Canadian values
Another major cause for concern is the effect that the EA buyout may have on Canadian workers, with the CWA fearing layoffs “The deal is being financed with US$20 billion in debt; as a result, some analysts suggest layoffs are one of the key ways the company will seek to cut costs in order to service its massive debt.”
You can read Smyth’s full letter on the CWA website linked below:
What are your thoughts on Saudi Arabia’s ownership of Electronic Arts? Let us know in the comments below, and stay tuned for all updates on the EA Buyout!
