Tencent, the renowned Chinese technology and entertainment powerhouse, recently took a significant step by removing two directors from the board of Epic Games. This move comes in the wake of an investigation by the U.S. Department of Justice (DOJ) focusing on antitrust concerns.
The DOJ, in its official statement, highlighted that these directors were in breach of Section 8 of the Clayton Act. This legal provision clearly prohibits a person from serving simultaneously on the boards of two competing entities, which, in this scenario, are Epic Games and Tencent.
In response to the investigation’s conclusions, Tencent decided to modify its shareholder agreement with Epic Games. Part of this adjustment includes relinquishing its entitlement to appoint directors to the board of the company famous for Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, emphasized the importance of this action: “Monitoring interlocking directorates remains a priority for us in the Antitrust Division,” she stated. Vishio further noted, “Thanks to the dedication and hard work of our outstanding team, we’ve seen significant achievements in enforcing Section 8 over recent years, making it a fundamental aspect of our regulatory framework.”
