It’s perhaps a communication problem, where the privacy settings should clearly state this. Or these settings shouldn’t be offered. But maybe this current structure is fine for most people?

Regardless, it’s how existing social media used to work. In that sense, federated social media can’t offer an alternative and that could be a problem for some.

The wording can be improved, I think “maximising profit” would fix it. Which is obviously what OP meant as we all understand it.