No, it doesn't say that. It says free apps are not hurt by this as much as paid apps, so charging a percentage fee to maintain the app store disproportionately hurts paid apps.
I don't think the argument is that _every_ free app is abusing your privacy, just that there are undoubtedly some, and they're hard to compete with in a privacy-respecting way due to the extra overhead that the app store fees incur.
It's proton suing. That's their entire case. They are a respecting privacy product that is unduly burdened while privacy abusing products are not. (their argument)
