You missed a bit
From the article:
Australia’s beef with Facebook alleges it “misled Australian consumers by representing that the Onavo Protect app would keep users’ personal activity data private, protected and secret, and that the data would not be used for any purpose other than providing Onavo Protect’s products.”
It's not the data collection that's the problem, it's the misrepresentation. Microsoft's "we collect your data, and you only get an off switch if you're an Enterprise" position was relatively open. The legal status of not having an off switch, and defaulting to 'on', is another debate entirely.