Tencent, the renowned Chinese tech and entertainment powerhouse, has decided to remove two of its directors from Epic Games’ board. This move comes in the wake of an investigation by the US Department of Justice (DOJ) into antitrust regulations.
According to a press announcement from the DOJ, the two board members were found to be in violation of Section 8 of the Clayton Act. This specific section essentially prohibits a director from serving on the boards of two competing companies, which in this case involves Epic Games and Tencent.
Following the investigation’s conclusions, Tencent has revised its shareholder agreement with Epic Games. This revision includes relinquishing its authority to appoint directors to the board of the company known for Fortnite.
Miriam R. Vishio, who is the deputy director of civil enforcement at the DOJ’s antitrust division, commented on the continued importance of monitoring interlocking directorates. “Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division,” she remarked.
Vishio further highlighted the impact of their efforts, saying, “Thanks to the dedication of our outstanding team, our heightened enforcement of Section 8 over the recent years has yielded significant outcomes and has become integrated into our core practices.”
