Tencent, a leading tech and entertainment powerhouse from China, recently made headlines by removing two of its directors from the board of Epic Games. This decision comes on the heels of an investigation by the US Department of Justice (DOJ) into potential antitrust law breaches.
In a governmental press release, the DOJ pointed out that these board members had contravened Section 8 of the Clayton Act, a regulation that restricts individuals from serving as directors on the boards of competing companies—here, that’s Epic Games and Tencent.
Following the investigation’s outcomes, Tencent opted to revise its shareholder agreement with Epic Games. This revision means Tencent will no longer have the authority to appoint directors to Epic’s board, the company famous for creating the mega-hit Fortnite.
Miriam R. Vishio, who’s the deputy director of civil enforcement at the DOJ’s antitrust division, remarked on this matter, saying, “We are continuing to place significant emphasis on scrutinizing interlocking directorates.” She further praised the diligent work of their team, noting, “Our intensifying efforts to enforce Section 8 over recent years have brought about major progress, making this type of enforcement a fundamental aspect of our operations.”
