Two Epic Games Board Members Resign After DOJ Inquiry
Two board members of Fortnite studio Epic Games resigned after the U.S. Department of Justice expressed concern that their positions on the board of Epic and that of one of its investors, the Chinese gaming giant Tencent, violated Section 8 of the Clayton Act.
The DOJ antitrust division announced the resignations Wednesday, adding that “Tencent also decided to amend its shareholder agreement with Epic to relinquish its unilateral right to appoint directors or observers to the Epic board in the future.”
The DOJ did not name the directors that resigned. Epic is a privately-held company.
Tencent, in addition to being an investor in Epic, also owns Riot Games, the developer of League of Legends and other game franchises.
Section 8 of the Clayton Act prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. The DOJ has been active in investigating companies that it fears may be violating the Act.
Earlier this year two members of the Warner Bros. Discovery board (both members of the Newhouse family) stepped aside owing to their board positions at Charter Communications. And John Malone exited as director emeritus of Charter as well, also citing Clayton Act concerns.
“Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division,” said Deputy Director of Civil Enforcement Miriam R. Vishio of the Justice Department’s Antitrust Division. “Due to the hard work of our tremendous staff, our increased enforcement around Section 8 over the last few years has achieved substantial results and become part of our fabric.”
