Directors from Tencent have resigned from the board of Epic Games following "concerns" raised by the US Justice Department

Two members from Tencent have stepped down from the board of Epic Games due to concerns from the US Justice Department regarding their roles.

The Justice Department, in a release on its website, indicated that the appointments to both Epic's and Tencent's boards were considered a breach of the Clayton Act's Section 8. This antitrust legislation aims to prevent business practices that could negatively impact consumers.

The Clayton Act stipulates that directors shouldn't hold positions on the boards of competing entities, such as Epic and Riot Games.

As a result, Tencent has updated its agreement with Epic to forfeit its independent right to assign directors or observers on Epic's board. Tencent holds a minor interest in Epic but owns Riot Games, an Epic rival.

"The scrutiny of interlocking directorates remains a key focus for the Antitrust Division," commented Miriam R. Vishio, the deputy director of civil enforcement. "Thanks to our exceptional team's efforts, our heightened Section 8 enforcement in recent years has yielded meaningful outcomes and is a fundamental aspect of our operation."

Tencent is delaying its participation in acquiring Ubisoft, the Assassin's Creed producer, pending assurances of more control over future board decisions.