Two Tencent Directors Resign from Epic Games Board Amid US Antitrust Probe
The US Department of Justice confirmed that two directors appointed by Tencent have resigned from the board of Epic Games following antitrust concerns. The Antitrust Division determined that their simultaneous service on the boards of both companies violated Section 8 of the Clayton Act, which prohibits interlocking directorates between competing firms. The conflict arose because Tencent, which holds a significant minority stake in Epic Games, also wholly owns Riot Games, a direct competitor to Epic. Consequently, Tencent has agreed to amend its shareholder agreement with Epic, relinquishing its unilateral right to appoint directors or observers to the board in the future. The involved directors are David Wallerstein, a Senior Management Advisor at Tencent, and Ben Feder, formerly of Tencent North America. This development highlights ongoing regulatory scrutiny of corporate governance structures involving major Chinese and US technology firms. While national security was not cited, the case underscores the complex interdependencies in the global gaming industry, particularly regarding the widespread use of Epic’s Unreal Engine by Chinese developers who lack comparable domestic alternatives.
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Two Tencent Directors Resign from Epic Games Board Amid US Antitrust Probe
The US Department of Justice confirmed that two directors appointed by Tencent have resigned from the board of Epic Games following antitrust concerns. The Antitrust Division determined that their simultaneous service on the boards of both companies violated Section 8 of the Clayton Act, which prohibits interlocking directorates between competing firms. The conflict arose because Tencent, which holds a significant minority stake in Epic Games, also wholly owns Riot Games, a direct competitor to Epic. Consequently, Tencent has agreed to amend its shareholder agreement with Epic, relinquishing its unilateral right to appoint directors or observers to the board in the future. The involved directors are David Wallerstein, a Senior Management Advisor at Tencent, and Ben Feder, formerly of Tencent North America. This development highlights ongoing regulatory scrutiny of corporate governance structures involving major Chinese and US technology firms. While national security was not cited, the case underscores the complex interdependencies in the global gaming industry, particularly regarding the widespread use of Epic’s Unreal Engine by Chinese developers who lack comparable domestic alternatives.
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