Tencent, the well-known Chinese tech and entertainment powerhouse, recently made headlines by removing two of its directors from the board of Epic Games. This decision comes in the wake of a U.S. Department of Justice (DOJ) investigation centered on antitrust laws.
According to a DOJ press release, these directors ran afoul of Section 8 of the Clayton Act. This regulation essentially prohibits individuals from serving on the boards of two competing companies—in this case, Epic Games and Tencent.
Following the DOJ’s scrutiny, Tencent has opted to revise its shareholder agreement with Epic Games. Crucially, they’ve relinquished their right to appoint board members for the company behind the hit game Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at DOJ’s antitrust division, emphasized the importance of addressing interlocking directorates. She noted, “Our focus on enforcing Section 8 has intensified over recent years, thanks in large part to our dedicated staff’s efforts. The substantial outcomes we’ve achieved have now become a cornerstone of our work.”
The DOJ’s firm stance on this issue reflects its continued commitment to maintaining fair competition in the marketplace.
