【Epoch Times, December 19, 2024】The U.S. Department of Justice has determined that the appointment of two directors by Tencent Holdings Limited at Epic Games Inc. violated antitrust laws. Subsequently, these two directors resigned and Tencent relinquished its seat on the Epic board of directors.
On Wednesday, December 18th, the U.S. Department of Justice announced that the two directors from Epic have resigned from the board. Prior to this, the Antitrust Division of the U.S. Department of Justice raised concerns that their positions on the boards of both Epic and Tencent violated Section 8 of the Clayton Act.
According to the statement, Tencent not only holds a minority stake in Epic but is also the parent company of Riot Games, a competitor of Epic in the gaming industry. This raised concerns regarding antitrust violations. The statement mentioned that Tencent has given up its seat on the Epic board of directors as well as its unilateral right to appoint directors or observers.
Miriam R. Vishio, Deputy Director of Civil Enforcement at the Antitrust Division of the Department of Justice, stated in the announcement: “Through the hard work of our large staff, we have increased enforcement efforts under Section 8 in recent years and have achieved substantial results, which have become part of our work.”
Section 8 of the Clayton Act stipulates that, except in exempt circumstances, individuals may be prohibited from serving as directors or executives of two or more competing companies if certain standards are met.
Tencent is based in the Cayman Islands and headquartered in Shenzhen, China. Tencent owns Riot and is also a minority shareholder in Epic. Epic is a privately held video game and software developer and publisher headquartered in Cary, North Carolina. Riot is an American video game developer, publisher, and organizer of esports tournaments based in Los Angeles.