Tencent, the powerhouse in tech and entertainment from China, has taken a notable step by removing two directors from the board of Epic Games. This action comes on the heels of an investigation by the U.S. Department of Justice (DOJ) concerning antitrust laws.
The DOJ’s press release highlighted a breach of Section 8 of the Clayton Act, which prevents an individual from serving on the boards of two competing companies—case in point, Epic Games and Tencent.
In light of the investigation’s conclusions, Tencent has revised its shareholder agreement with Epic Games. This revision includes relinquishing its right to appoint board directors to the company best known for Fortnite.
Miriam R. Vishio, the deputy director of civil enforcement within the DOJ’s antitrust sector, emphasized the significance of monitoring interlocking directorates. She noted, “This continues to be a top priority for the Antitrust Division.”
Thanks to the dedicated efforts of their skilled team, there has been impressive progress in enforcing Section 8 over recent years, shaping a new standard of fairness in the industry.
