How does that debunk it? If they were so concerned, why didn't they do anything about it?
One plausible answer: they were mollified by cryptography. Remember when it was revealed that the NSA was sniffing cleartext traffic between Google data centers[0]? In response, rather than campaigning for changes to legislation (requiring warrants for data collection, etc.), the big tech firms just started encrypting their internal traffic. If you're Google and your adversaries are nation state actors and other giant tech firms, that makes a lot of sense.
But as far as user privacy goes, it's pointless: Google is the adversary.
[0] https://theweek.com/articles/457590/why-google-isnt-happy-ab...