Tencent, the major Chinese player in tech and entertainment, has recently taken action to remove two directors from the board of Epic Games. This decision comes in the wake of a U.S. Department of Justice (DOJ) investigation into potential antitrust law violations.
According to a statement from the DOJ, the involvement of these board members was in breach of Section 8 of the Clayton Act. This particular section clearly states that an individual cannot simultaneously hold board positions in two rival companies, which, in this scenario, are Epic and Tencent.
Following the scrutiny and the conclusions of this investigation, Tencent has opted to alter its shareholder agreement with Epic Games. This adjustment involves relinquishing its ability to appoint directors to the board of the company renowned for Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, commented, “Our focus on issues of interlocking directorates remains a top priority for the Antitrust Division.” She further noted, “Thanks to the diligent efforts of our remarkable team, we have seen meaningful progress and impact from our heightened enforcement of Section 8 over recent years. It’s truly become an integral part of our mission.”
