There is often no clear dividing line between government and corporations. You give one freedom to abuse privacy and it will be used by the other.
They regularly try to do this, as with working from home monitoring, or insurance companies profiling individuals.
Governments can also be governments in name only, see corporatocracism.
Comparing that with what governments can do with data gathered about me, I know which ones I want to be protected from. Unfortunately they are the ones writing privacy laws and they leave huge loopholes for themselves.
This harms companies, website owners trying to use services, and users (someone using my free site, I need to monetize it, targeted ads was a nice way, now I can't).
I see no upsides of actually protecting privacy.
No, Germany is a big leader in the EU. They are very sensitive to issues around privacy, from the DDR era.
They don't want private corporations having DDR-like folders of information on citizens.