As far as I know differential pricing is based on classes like industrial vs commercial and applied fairly. Incentives for development are super common of course, and controversial in themselves.

This would be different though, targeting a business to pay more than other commercial enterprises. That's a targeted disincentive, and if not structured generically and applied fairly it's bad policy. Seems hardly different than Comcast deliberately slowing Netflix down, not to extract revenue, but to put them out of business.