In the former, a small closed source centralized authority has all the information and power.
In the latter, everyone has the information, so the balance of power is evened.
In the latter, everyone has the information, so the balance of power is evened.
In other words, individual right to privacy may be generally a good principle that we may agree to, but society is too complicated to not resort to pragmatism and there will always be exceptions. Is it not the same with every other idealogical principle by which we govern ourselves?