Chinese tech giant Tencent recently made headlines by taking steps to address a US Department of Justice (DOJ) investigation that centers on antitrust laws. Due to this scrutiny, Tencent decided to remove two directors from the board of Epic Games.
The DOJ issued a press release detailing its findings. According to them, the directors in question were in violation of Section 8 of the Clayton Act. This specific law states that no person can sit on the boards of two competing companies. In this situation, the conflict involved Epic Games and Tencent.
Following these revelations, Tencent has altered its shareholder agreement with Epic Games. A significant aspect of this change is that Tencent will no longer have the right to appoint directors to the board of the developer known for creating Fortnite.
Miriam R. Vishio, who serves as the deputy director of civil enforcement at the DOJ’s antitrust division, emphasized the importance of this issue. “We’ve made the examination of interlocking directorates a priority for enforcement,” she stated. Vishio added, “Thanks to our dedicated staff, our focus on Section 8 enforcement over recent years has yielded notable outcomes and has been woven into our operations.”
