Two directors of Epic Games, a video game maker behind the popular Fortnite game, have resigned from the board of the company after the US Justice Department expressed concerns that their simultaneous membership on the boards of both Epic and Tencent, a Chinese gaming and social media firm, violated US law.
The Justice Department’s antitrust division had been concerned that the two directors’ dual roles could have given Tencent an unfair advantage in the market, as it owns a minority interest in Epic Games and is also the parent company of a gaming competitor, Riot Games.
According to the Justice Department, the directors’ positions on both boards violated Section 8 of the Clayton Act, which prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions.
Epic Games confirmed the resignations, saying that the two Tencent-nominated board directors had voluntarily stepped down from their positions on the board earlier this year based on the US Department of Justice’s concerns. The company also announced that it would be nominating two new independent board members from committees of its shareholders.
Tencent, on the other hand, did not immediately provide a comment on the matter. The Justice Department stated that no company or individual has admitted to any wrongdoing in connection with this investigation.
