Two Epic Games board directors have resigned from their positions amid an antitrust inquiry by the Justice Department. The board members had been appointed to the privately held company’s board by minority investor Tencent, which is the China-based owner of Epic competitor Riot Games.
Epic Games, which also counts Disney among its investors, is the owner of popular online gaming platform Fortnite and the creator of Unreal Engine, the industry’s top tech used to build video games.
According to a press release issued by the DOJ Wednesday, the government body’s antitrust division “expressed concerns” that the unnamed individuals’ positions on both the Epic and Tencent boards “violated” Section 8 of the Clayton Act, which “prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions.”
“Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division,” said Miriam R. Vishio, DOJ antitrust division deputy director of civil enforcement. “Due to the hard work of our tremendous staff, our increased enforcement around Section 8 over the last few years has achieved substantial results and become part of our fabric.”
Amid the board director resignations, Tencent has “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.”
“The two Tencent-nominated Board Directors who had a minority of board votes voluntarily resigned from Epic’s Board earlier this year based on the US Department of Justice’s expressed concerns related to Section 8 of the Clayton Act,” a spokesperson from Epic Games said in a statement to Variety. “We are grateful for their service on Epic’s Board. Two new independent board members will be nominated by committees of Epic’s shareholders.”
