Two members of the board of directors at Epic Games have resigned following an investigation by the US Department of Justice into potential antitrust violations. These directors were appointed by Tencent, a minority stakeholder in Epic Games, leading to concerns about conflicts of interest. The US government intervened, citing the Clayton Act, which prohibits directors from serving on the boards of competing companies.
The resignations of Ben Feder and David Wallerstein, who had ties to Tencent, were confirmed by Epic Games. The investigation highlighted the need for Tencent to amend its shareholder agreement with Epic Games to prevent future board appointments. This move was made to avoid any further legal issues for both companies.
Antitrust laws are in place to prevent companies from monopolizing industries and gaining excessive power. Similar concerns have been raised in the video game industry before, such as with Valve and Microsoft’s acquisition of Activision Blizzard. Compliance with these laws is crucial to maintain fair competition.
