In a recently-shared post on its WeChat account, the Cyberspace Administration of China, which operates as the central Internet regulator, censor, oversight, and control agency for the People's Republic of China, announced the action against Weibo.
It said the company is being reprimanded for several issues, including "interfering with online communication order" as well as "disseminating illegal information."
Weibo has not commented on the matter, while CAC has only said that the case pertains to a person with surname 'Jiang'.
It remains unclear whose communication Weibo had interfered with, but Reuters suggests the matter could be related to Jiang Fan, a senior Alibaba Group executive whose relationship with an influencer came into light on Weibo.
China is known for controlling the internet, with the government setting the narrative for what the people of the country are supposed to see online.
As part of its stringent internet regulation, the CAC often takes down content depicting pornography, violent protests (especially those showing the government's action against protesters), and sensitive posts portraying the Chinese government in a bad light.