Recently, Tencent, a major player in the tech and entertainment world from China, has had to make some significant changes on Epic Games’ board. This move comes in light of an investigation by the US Department of Justice (DOJ) into antitrust law violations.
According to a DOJ press release, the investigation revealed that the board members in question were in breach of Section 8 of the Clayton Act. This part of the law clearly states that no individual can sit on the boards of two competing companies, which in this scenario were Epic Games and Tencent.
Following the conclusions of this inquiry, Tencent has altered its shareholder agreement with Epic Games. It’s a notable change, as Tencent has relinquished its right to appoint board members for the company behind the massively popular game, Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, emphasized the focus on such board overlaps. She stated, “Our concentration on interlocking directorates remains a key enforcement focus for the Antitrust Division.”
This investigation’s outcome highlights the diligent efforts of the DOJ staff. Vishio further noted, “Thanks to the hard work of our outstanding team, we’ve stepped up enforcement around Section 8 in recent years, yielding significant results and becoming a core part of our operations.”
