If Starbucks knows my location, they can send me a coupon if I enter a Dunkin' Donuts store. If the State knows my location they can falsely accuse me of a murder that I just happened to be near the location of and - if I'm unlucky or have a bad lawyer - execute me for it.
That's not, of course, to say that there aren't some cases where a private business having access to my location could have a deleterious effect. But here's the rub: if you rely on regulation to prevent those cases, you're right back to needing to trust the State, which is - IMO - a foolish proposition.
The division is so trivially violated it's pretty much irrelevant.
But those largely cosmetic boundaries certainly play a large role in public perception and acceptance of living in a surveillance state.
[1] https://motherboard.vice.com/en_us/article/gykgv9/securus-ph...
Wide availability of tracking data facilitates domestic violence and stalking, for starters.
Say that someone gets killed by their ex who found them through tracking data leaked by some irresponsible and/or profiteering company. How do we hold that company accountable? How can we prove that it was them who leaked the data, when it's everywhere?
We can't hold the credit authorities like Equifax accountable today for the identity theft they facilitate. This is the same problem. The aggregation of our individual data by companies causes massive negative externalities, borne by individuals.
Again, this cost is not borne by the data aggregator -- it's a negative externality borne by individual citizens. Good luck suing them.
Why thwart one great harm yet happily tolerate the other?