Taking the privacy discussion to business & the Web [let's leave politics aside, thanks] it's a matter of being upfront and offering choice.
People get scared when they think about their "information" being out there. We forget how much our credit card companies, grocery stores with their club cards, catalogues and retailers know. The web shows so much data directly that it's become a target and while it's not the only place with a problem, we still need more transparency to stop the issue.
We as an industry have been too shy in explaining the benefits of data and now it's coming back to hurt in the form of laws and investigations. Anonymized data, in huge numbers can do great things... drive movie suggestions, show you ads that you prefer [since we all know you'll see an ad either way]. Throw in some choice to step out [and loose functionality] and it's a better playing field.
As for Facebook v Google... that's a whole other topic on competition, the focus on privacy is just today's battle.