In a recent move that has caught the gaming industry’s attention, Tencent, the prominent Chinese tech and entertainment company, has decided to remove two of its directors from the board of Epic Games. This shift follows an investigation by the US Department of Justice (DOJ) into potential violations of antitrust laws.
The DOJ highlighted in their announcement that the directors in question may have breached Section 8 of the Clayton Act—a rule that prevents individuals from being on the boards of two rival companies. In this situation, the conflict involved Epic and Tencent.
Responding to the investigation’s findings, Tencent has altered its shareholder agreement with Epic Games. They have relinquished their right to appoint board members to Epic, the renowned creator of Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, emphasized the importance of monitoring interconnected directorships. She noted, “Our focus on interlocking directorates remains a key priority for the Antitrust Division. Thanks to the diligent efforts of our incredible team, we’ve seen significant enforcement of Section 8 over recent years, which has become integral to our approach.”
This development underscores the DOJ’s commitment to rigorously enforcing antitrust laws, ensuring fair competition in the industry.
