Government is supposed to be there to create laws to protect consumers and producers. To protect people of the country from outsiders. The accounting laws protect investors from fraud and under the table deals.
State cannot truly separate from business. State decides whether a product or service will have single or multiple competitors. They create taxes to increase or decrease the demand of things.
Governments aren't about fairness and just enough. Instead of an optimal solution for everything, we have choices. Businesses are allowed to compete economically to see what the market demand is.
I understand what you're saying is state should not have personal preferences towards specific businesses because for personal profit. Government needs to be scientific and complete unsubjective.