cyberspace watchdog: Officials from the CAC, the Ministry of Public Security, the Ministry of State Security, the Ministry of Natural Resources, along with tax, transport and antitrust regulators, began an investigation on-site at the company's offices, the cyberspace watchdog said in a statement. ; Regulators are weighing a range of potential punishments, including a fine, suspension of certain operations or the introduction of a state-owned investor, the people said, according to The Japan Times. Also possible is a forced delisting or withdrawal of Didi's U.S. shares, although it's unclear how such an option would play out. Regulators see the ride-hailing giant's decision to go public despite pushback from the Cyberspace Administration of China as a challenge to Beijing's authority, the people said, asking not to be named because the matter is private. Deliberations are at a preliminary phase and the outcomes are far from certain. It's hard to guess what the penalty will be, but I'm sure it will be substantial, said Minxin Pei, a professor of government at Claremont McKenna College in California. Beijing is likely to impose harsher sanctions on Didi than on Alibaba Group Holding Ltd., which swallowed a record 2.8 billion fine after a monthslong antitrust investigation and agreed to initiate measures to protect merchants and customers, the people said.
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Tagged under cyberspace watchdog, ride-hailing giant topics.