Two Epic Games directors resign following DOJ antitrust investigation

Two board members of Fortnite Studio Epic Games resigned after the U.S. Department of Justice raised concerns that their positions on Epic’s board and those of one of its investors, Chinese gaming giant Tencent, violated Section 8 of the Clayton Act.

The DOJ’s Antitrust Division announced the resignations on Wednesday, adding: “Tencent has also decided to amend its shareholder agreement with Epic to waive its unilateral right to appoint future directors or observers to Epic’s board.”

The DOJ did not name the directors who resigned. Epic is a privately held company.

In addition to being an investor in Epic, Tencent also owns Riot Games, the developer of League of Legends and other game franchises.

Section 8 of the Clayton Act prohibits directors and officers from serving concurrently on the boards of directors of competitors, with limited exceptions. The DOJ has actively investigated companies that it fears are violating the law.

Earlier this year, two Warner Bros. Discovery board members (both members of the Newhouse family) resigned due to their board positions at Charter Communications. And John Malone also resigned as director emeritus of Charter, also citing concerns related to the Clayton Act.

“Examining interlocking directorates continues to be an enforcement priority for the Antitrust Division,” said Miriam R. Vishio, deputy director for civil enforcement for the Justice Department’s Antitrust Division. “Thanks to the hard work of our great staff, our enhanced Section 8 enforcement has achieved significant results over the past few years and has become part of our fabric.”