By Sagar V. Mankar 
Two directors from Epic Games’ board have resigned following concerns raised by the U.S. Department of Justice (DOJ) over potential violations of antitrust laws. These directors were appointed by Tencent, a minority investor in Epic Games and the owner of Riot Games, a direct competitor of Epic.
Epic Games, known globally for its blockbuster online game Fortnite and its powerful game development software Unreal Engine, also has Disney among its investors. The DOJ’s antitrust division expressed concerns that having individuals serve on both Tencent’s and Epic’s boards could breach Section 8 of the Clayton Act. This law prohibits directors and officers from holding board positions in competing companies, with limited exceptions.
Miriam R. Vishio, Deputy Director of Civil Enforcement at the DOJ’s Antitrust Division, emphasized the department’s commitment to enforcing these regulations. Vishio noted that increased enforcement efforts in recent years have yielded significant results, reinforcing the importance of preventing conflicts of interest caused by interlocking directorates.
In response to the DOJ’s concerns, Tencent has decided to amend its shareholder agreement with Epic Games. This amendment relinquishes Tencent’s unilateral right to appoint board directors or observers to Epic in the future. Epic Games confirmed the resignation of two Tencent-appointed directors earlier this year, stating that the decision was voluntary and aimed at addressing the DOJ’s concerns.
An Epic Games spokesperson expressed gratitude for the contributions of the departing directors and confirmed plans to nominate two independent board members. These nominations will be managed by committees representing Epic’s shareholders.