Two board members of Fortnite studio Epic Games recently resigned following concerns raised by the U.S. Department of Justice regarding potential violations of Section 8 of the Clayton Act. The DOJ’s antitrust division announced the resignations, highlighting that Tencent, a major investor in Epic, has also amended its shareholder agreement to relinquish its right to appoint directors or observers to the Epic board in the future.
While the names of the resigning directors were not disclosed, Epic Games, as a privately-held company, is navigating the aftermath of these changes. Tencent, in addition to its investment in Epic, also owns Riot Games, the developer of popular game franchises like League of Legends.
Section 8 of the Clayton Act prohibits individuals from serving on the boards of competing companies simultaneously, with certain exceptions. The DOJ has been actively investigating potential violations of this Act, leading to recent resignations from other boards as well.
Deputy Director of Civil Enforcement Miriam R. Vishio emphasized the DOJ’s continued focus on interlocking directorates and enforcement around Section 8 violations. The recent actions taken by the DOJ signal a commitment to upholding antitrust laws and maintaining a fair competitive landscape within the gaming industry.
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