He was just citing the internet, which was owned by the government(which is supposed to be the public) is being privatized
Your parenthetical remark says a lot. We often speak
of "public" property as though it were synonymous
with "government property", but government is a
corporate entity too, and instead of being a trustee
for the public, it jealously looks out for its own interests.

In spite of many years of naive patriotic rhetoric, the
government is not "the people". The worst thing we could
do, when we are being robbed by big business, would
be to form the habit of always running to the government
for a remedy. It's like going to one gangster to get
protection from another.

Noam Chomsky is right about one thing. The root of the problem
is in the legal license that a corporation has obtained
to be a "Limited Liability Corporation". It can do business
as though it were "a person", but no one in the corporation,
least of all its owners, is responsible for its actions.