I think he's pointing out that privacy violations by private industry carry far less risk compared to those by the government, because private industry cannot l

I think he's pointing out that privacy violations by private industry carry far less risk compared to those by the government, because private industry cannot legally deprive me of life, liberty, or property. Because the government has the right of violent force over you, it must be far more closely controlled to ensure that opportunity for abuse of that right is minimized. To say that privacy violations by the government are bad is not to say that such violations by private entities are good, but they are certainly far less costly.