Tencent, the well-known Chinese tech and entertainment powerhouse, has recently made a notable change 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) concerning antitrust regulations.
According to a DOJ press release, the directors in question were found to have violated Section 8 of the Clayton Act. The law clearly states that an individual cannot simultaneously serve on the boards of two competing corporations, which is exactly what had happened between Tencent and Epic.
Following these revelations, Tencent decided to amend its shareholder agreement with Epic Games. As part of this, Tencent has relinquished its right to appoint members to Epic’s board, signaling a significant shift in its previous approach.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, emphasized the continued focus on what is known as interlocking directorates. “Ensuring compliance with these laws remains a key priority for us,” she stated. “Thanks to the dedication and efforts of our exceptional team, we’ve seen significant achievements in enforcing Section 8 in recent years, making it a crucial aspect of our operations.”
