Two Epic Games directors step down after US Department of Justice investigate games companies under antitrust laws

Two members of the board of directors at Epic Games have resigned from their positions following an investigation by the US Department of Justice into potential antitrust violations. These directors were appointed by Tencent, a company that holds a minority stake in Epic Games, leading to concerns about conflicts of interest. The US government determined that having board members with ties to competing companies like Tencent and Riot Games is not permissible under antitrust laws.

The Department of Justice announced the resignations as a result of their investigation, citing violations of the Clayton Act, which prohibits directors from serving on the boards of competing companies. The two directors who stepped down, Ben Feder and David Wallerstein, were associated with Tencent and were not eligible to hold positions on Epic Games’ board.

Both Feder and Wallerstein have backgrounds in the gaming industry, with ties to Tencent and other major companies. Their resignations were confirmed by Epic Games, and it appears they took this step to avoid further legal scrutiny for themselves and their respective companies.

Tencent has also agreed to amend its shareholder agreement with Epic Games to prevent future appointments of directors to the board. This move aims to ensure compliance with antitrust laws and prevent any further conflicts of interest in the future.

Antitrust laws are in place to prevent monopolies and promote fair competition in the market. Similar concerns have been raised in the past with companies like Valve and Microsoft, as they navigate complex acquisitions and partnerships within the gaming industry.