Epic Games' Board Sees Resignation of Tencent Directors Following US Justice Department Concerns

Following concerns raised by the US Justice Department, two directors from Tencent have stepped down from their positions on Epic Games' board of directors. The department's website posted a statement highlighting the issue, citing a potential breach of Section 8 of the Clayton Act, an antitrust law aimed at protecting consumers from harmful practices. This law stipulates that directors should not simultaneously serve on the boards of competing companies, such as Epic Games and Riot Games. As a result, Tencent has revised its shareholder agreement with Epic Games, relinquishing its right to unilaterally appoint directors or observers to the board, given its minority stake in Epic and its ownership of Riot Games. The US Justice Department's deputy director of civil enforcement, Miriam R. Vishio, emphasized that addressing interlocking directorates remains a key enforcement priority. The department's increased efforts in this area over the past few years have yielded significant results. Meanwhile, Tencent is reportedly delaying its potential involvement in the buyout of Ubisoft, the publisher of Assassin's Creed, and its plans to increase its stake in the company until it can secure greater influence over future board decisions.