First Enforcement Action under Anti-Monopoly Law against Administrative Monopoly

On January 26, 2010, three GPS operators filed a complaint to the Guangdong Administration for Industry and Commerce ("Guangdong AIC") claiming that the municipal government of Heyuan city, Guangdong province ("Heyuan Government") abused its administrative power in the course of promoting the global positioning system ("GPS") for automobiles and eliminated and restricted competition in this industry.  After investigation, the Guangdong AIC officially proposed to the Guangdong Government asking for rectification of Heyuan Government's abusive conducts.

According to news reports, after receiving the complaint, the Guangdong AIC initiated investigations and identified the following facts: