Tencent Removes Two Directors from Epic Games and Relinquishes Its Right to Unilaterally Appoint Directors or Observers in Response to Justice Department Scrutiny

The Justice Department announced today that two directors of Epic Games Inc. (Epic), who had been appointed by Tencent Holdings Ltd. (Tencent), resigned from the Epic board after the Antitrust Division expressed concerns that their positions on both the Epic and Tencent boards violated Section 8 of the Clayton Act. Tencent owns a minority interest in Epic. The interlock was created because Tencent also is the parent company of a gaming competitor to Epic, Riot Games Inc. 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. This is the latest of the division’s ongoing Section 8 enforcement efforts, which to date have unwound or prevented interlocks involving at least two dozen companies.

From the U.S. Department of Justice: Read More