Tencent reduces presence in Epic Games after pressure from the US Department of Justice

The US Department of Justice has tightened the grip on the simultaneous presence of directors from Tencent in competing companies, leading the Chinese giant to remove two of its representatives from the executive board of Epic Games, Inc..

The central point of the dispute? A possible violation of Section 8 of the Clayton Act, which prohibits business practices that could harm consumers by allowing interference between competing companies. Tencent, in addition to being a major shareholder of Epic Games, also controls Riot Games, known for creating League of Legends.

According to the Department of Justice, this overlap of boards raises "antitrust concerns". Miriam R. Vishio, Deputy Director of Civil Enforcement at the agency, stated:

“Our focus on enforcing Section 8 remains a priority in the Antitrust Division. In recent years, our actions have resulted in significant advances in competition protection."

This action comes at a time of renewed attention on Tencent. Recently, the company has also been in negotiations with Ubisoft for a possible acquisition deal that could take the Assassin's Creed developer off the public market.

With Tencent stepping back in Epic Games, the situation sheds light on the impact of American regulations on the operations of foreign giants in the gaming sector. Meanwhile, the market is watching how these changes may alter power dynamics in the global industry.