Tencent directors resign from Epic Games board over US Justice Department concerns

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Two directors appointed by Tencent to the board of Epic Games resigned after the US Justice Department’s antitrust division raised concerns. 

The US Justice Department said that the two directors’ roles on both Epic Games and Tencent boards violated Section 8 of the Clayton Act, which restricts directors from serving on competing boards, with few exceptions. 

Tencent holds a minority stake in Epic Games and is also the parent company of Riot Games, which the Justice Department called a competitor to Epic. 

Violating the Clayton Act

“Tencent also decided to amend its shareholder agreement with Epic to relinquish its unilateral right to appoint directors or observers to the Epic board in the future,” the department said.

“No company or individual has admitted to liability in connection with this investigation.The division will continue to monitor the industry, and other industries, for violations of the antitrust laws, including Section 8.” 

The department’s deputy director of civil enforcement Miriam Vishio said: “Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division.

“Due to the hard work of our tremendous staff, our increased enforcement around Section 8 over the last few years has achieved substantial results and become part of our fabric.”