They mean privacy with respect with other users. Newspeak. I hope this way of interpreting the word doesn't catch on.
Unfortunately the fashionable thing to do these days is to assume that everything will work out for the best on its own.
At least Google has aspirations of not being evil. Mark Zuckerberg only seems to aspire to eliminating privacy altogether.
I do find it amusing that the control of the web and computing by a handful of companies is now apparently ingrained in some people's heads as axiomatic, such that any apparent criticism of one oligarch is automatically a defense of the other.
FWIW: I dislike Facebook but I use it anyway because that's where everyone I know seems to be. If I could substitute it for another service that lets me more tightly control who sees what, then great.