China’s most valuable company owns both a minority stake in Epic and a direct competitor in its Riot Games subsidiary, giving rise to concern about antitrust violations, the DOJ said in a statement Wednesday. Tencent relinquished the seats as well as its unilateral right to appoint directors or observers, according to the statement.
The two directors stepping down are David Wallerstein and Ben Feder, Epic Games said in an email. Wallerstein was a long-time Tencent executive before taking on an advisory role this year, while Feder is managing partner of Tirta Ventures.
The Department of Justice said it has amped up enforcement and oversight of potential violations of Section 8 of the Clayton Act, which prohibits directors from serving on the boards of competing companies such as Epic and Riot Games, the latter being the creator of multiplayer online games like League of Legends.
“Scrutiny around interlocking directorates continues to be an enforcement priority for the Antitrust Division,” Deputy Director of Civil Enforcement Miriam Vishio said in the DOJ’s statement. “Our increased enforcement around Section 8 over the last few years has achieved substantial results.”
