As a seasoned gaming enthusiast with decades of experience under my belt, I must say, I find these recent developments surrounding Epic Games and Tencent quite intriguing. It seems like the antitrust division of the U.S. Department of Justice is playing a game of their own, one that’s not for the faint-hearted.
Two executives from Fortnite studio Epic Games stepped down following an expression of apprehension by the U.S. Department of Justice, as their roles on Epic’s board and that of one of its significant investors, Tencent (a Chinese gaming conglomerate), might have breached Section 8 of the Clayton Act.
On Wednesday, the Antitrust Division of the Department of Justice made an announcement about resignations. Furthermore, they stated that Tencent has chosen to modify their shareholder agreement with Epic, effectively giving up the ability to independently select directors or observers for the Epic board in the future.
The DOJ did not name the directors that resigned. Epic is a privately-held company.
Besides investing in Epic, Tencent is also the owner of Riot Games, a studio that creates games such as League of Legends and various other series.
In simpler terms, Section 8 of the Clayton Act prevents top-level executives (directors and officers) from being part of multiple competing companies at the same time, except under specific circumstances. The Department of Justice (DOJ) has been vigilant in examining firms that it suspects might be breaching this law.
This year, two board members from Warner Bros. Discovery (who happen to be part of the Newhouse family) temporarily stepped down due to their roles on the board at Charter Communications. Additionally, John Malone relinquished his position as Director Emeritus at Charter Communications, likewise mentioning issues related to the Clayton Act.
Miriam R. Vishio, Deputy Director of Civil Enforcement at the Justice Department’s Antitrust Division, emphasized that the examination of interlocking directorates remains a key focus for enforcement. She highlighted the significant outcomes from stepped-up enforcement in Section 8 over recent years, which has now become an integral part of our operations, thanks to the diligent efforts of our exceptional team.
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2024-12-19 01:54