Two Epic Games Board members’ resignations took place due to concerns raised by the U.S. Department of Justice (DOJ). The DOJ’s Antitrust Division believes their roles on the boards of both Epic Games and Tencent, a major Chinese gaming company, could violate U.S. competition laws.
The DOJ’s antitrust division announced the 2 Epic Games Board members’ resignations on Wednesday, noting that “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.” Being a privately-held company, the DOJ didn’t disclose any information about the names of the resigning directors and other internal information.
The law in question, Section 8 of the Clayton Act, prevents individuals from serving on the boards of competing companies at the same time, with only a few exceptions. Recently, the DOJ has been enforcing this rule more strictly, leading to several resignations in various industries. According to Miriam R. Vishio, Deputy Director of Civil Enforcement at the DOJ, “Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division.”
Tencent, which owns a stake in Epic Games, has faced scrutiny before. The company also owns Riot Games, the maker of League of Legends and Valorant. While the DOJ did not name the individuals who resigned, this action is seen as a step toward promoting fair competition and transparency in the gaming world.The gaming industry is becoming more complicated, with big companies like Tencent and Epic Games owning shares in multiple businesses.
As the DOJ cracks down on practices that might limit competition, it could change how companies operate. This shift suggests the era of unchecked growth and potential conflicts of interest in gaming may be coming to an end.
Overall, the DOJ’s actions are a positive step toward more accountability in the gaming sector. With companies increasingly blending roles and interests, regulators must stay vigilant to protect both consumers and competitors. The resignations from Epic Games’ board serve as a reminder that gaming companies are not exempt from rules designed to ensure fairness in the marketplace.
