A private company can rat you out the government in the same way that a private citizen can report you to the police. I don't see a reasonable way to change this.

The government should be held to higher standards in terms of being able to appeal its actions, fairness, evidentiary standards. But the government shouldn't necessarily be prevented from acquiring and using information (which is otherwise legally obtained).

I don't disagree that we should perhaps more restrictions on private processing of data though -- GDPR style legislation that imposes a cost on data collection is probably sufficient.