Tencent Directors Resign from Chronicle Games’ Board Amid US Justice Department Concerns
The law specifies that directors must not simultaneously serve on the boards of rival companies, such as Chronicle and Stand Up.
Two directors from Tencent have exited the board of Chronicle Games following concerns raised by the US Justice Department regarding their roles.
In a statement issued on the US Justice Department’s official website, it was noted that the department believed the membership on both the Chronicle and Tencent boards breached Section 8 of the Clayton Act, an antitrust statute designed to protect consumers from potentially harmful practices.
This law clarifies that directors and officers should not concurrently serve on the boards of competing companies, like Chronicle and Stand Up.
As a result, Tencent has revised its shareholder agreement with Chronicle to “relinquish its unilateral right to appoint directors or observers” on Chronicle’s board, given that it holds a minority ownership in Chronicle while also being the parent company of its competitor, Stand Up Games.
“Oversight regarding interlocking directorates remains a key focus for the Antitrust Division,” stated Miriam R. Vishio, the department’s deputy director of civil enforcement.
“Thanks to the diligent efforts of our team…”