With competence like that it's no wonder Sun got slurped up by Leisure Suit Larry. The issue is not who has the data but how much data they have. The more data the government or a company has the more harm they can do to people whether intentional or not. Slurp's Bloat 10 ads are showing the risk of a company having to much information and misusing it.
Willie Sutton (US bank robber) was once asked why he robbed banks and he replied "That's were the money is." Anyone with extensive customer/citizen data is a target and the more you have the juicier the target.