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But isn't it against the law to publicly spread false information that affect someone's business?

Not if the city of Ghent has effected a bylaw for this specific practice. When you're part of "the state", you can do that.

It's against the law to clamp a motor vehicle you don't own, yet the council can still come along and clamp you if you don't buy a ticket in their car parks. Punishments aren't typically illegal if you violated the rules effecting that punishment. After all, it's illegal to murder people, yet the majority of US states have provisions for execution as a form of punishment.



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