Chinese tech and entertainment powerhouse Tencent has recently pulled two directors off the board of Epic Games. This move comes following an investigation by the U.S. Department of Justice (DOJ) into potential breaches of antitrust laws.
According to a press release from the DOJ, the directors in question were found to be in violation of Section 8 of the Clayton Act. This particular law dictates that a person can’t simultaneously serve as a director for two rival companies, which, in this scenario, are Epic and Tencent.
Following the conclusions drawn from the investigation, Tencent decided to alter its shareholder agreement with Epic Games. This change means Tencent has forfeited its previous right to appoint directors to the board of the company responsible for Fortnite.
“Focusing on interlocking directorates remains a priority for the Antitrust Division,” stated Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division. “Thanks to the dedicated efforts of our outstanding team, our intensified enforcement of Section 8 over recent years has led to meaningful outcomes and has become ingrained in our operational approach.”
