Tencent Dumps Epic Games Board Seats Following Department of Justice Concerns

Two directors from Epic Games resigned from the company’s board of directors in December 2024 following intervention by the United States Department of Justice. The federal agency’s Antitrust Division raised concerns that the dual roles held by these individuals—who served on the boards of both Epic Games and Tencent Holdings—potentially violated Section 8 of the Clayton Act. This statute prohibits individuals from simultaneously serving on the boards of competing companies, a restriction intended to prevent anti-competitive behavior.

The conflict arose because Tencent, which holds a minority interest in Epic Games, is also the parent company of Riot Games, a direct competitor in the gaming industry. To resolve the regulatory concerns, Tencent amended its shareholder agreement with Epic Games, formally relinquishing its unilateral right to appoint directors or observers to the Epic board in the future. The directors involved in the resignation were identified as David Wallerstein, a senior advisor to Tencent, and Ben Feder, a managing partner at TIRTA Ventures.

This action reflects an ongoing enforcement priority for the Department of Justice regarding interlocking directorates within the technology and gaming sectors. While the resolution resulted in significant governance changes for both companies, no party involved admitted to liability in connection with the investigation. The move underscores the heightened regulatory scrutiny facing major international gaming conglomerates that maintain minority stakes across multiple competing developers and publishers.