What can a state-owned business do that private businesses cannot regarding sales?

A state-owned business has the authority to choose who they want to sell to, often with certain regulatory allowances or public policy considerations in mind. Unlike private businesses that must operate within the confines of competition and antitrust laws, state-owned enterprises sometimes engage in sales practices that are aligned with governmental goals or regulations, leading them to prioritize certain buyers or sectors. This is particularly relevant in cases where the state aims to promote local economies, underserved communities, or other public interests.

In contrast, private businesses typically have to navigate more stringent market forces and regulations, which can limit their ability to selectively choose customers based on criteria that a state-owned business might prioritize.

On the other hand, operating without regard to federal regulations is not accurate for state entities, as they are still bound by certain legal frameworks, particularly if receiving federal funding. Excluding taxes from transactions is generally not permissible for any business, as tax obligations apply uniformly across the board. Additionally, while state-owned businesses may set prices, they often still have to operate within or justify their pricing structures against market trends and economic realities. Thus, the ability of state-owned businesses to selectively determine who they sell to stands out as a unique characteristic that differentiates them from private enterprises.