First of all, any business license should not be under the jurisdiction of the industrial and commercial department, and only under special circumstances will it be handled by the public security department. See Article 14 of the Measures for Investigating and Banning Unlicensed Business for details.

But no matter who is in charge, it should not be this kind of "jurisdiction". Are you sure it was the police? I deeply suspect that there is something else hidden in this incident you encountered, which is definitely not as simple as operating without a license! What kind of local police dare to be so arrogant?

In addition, for such a thing, you must first confirm whether you have evidence. If you have no proof, it is useless to say anything. Even if you have an idea, you can only bluff.

As a normal step, you should first report the problem to the local letters and calls bureau, and the letters and calls department will hand it over to the relevant departments for handling. If the relevant departments can't handle it, they can bring an administrative lawsuit to the local court.

But again, it should be more than just operating without a license!