The code is more than just gratis; it's libre. This is Ubuntu, based on Debian GNU/Linux. (Yeah, okay, some of the code is merely gratis, but most of it is libre.)
I don't expect an OS based on an OS based on an OS based on a half-finished OS based on free software principles to have shady data-dealing attached, yet hidden from the people whose data is being dealt.
Free software is about user empowerment, and the ability for users to be hackers if they want to (or employ people to make changes on their behalf). “Sike, we've been stalking you and you can't do anything about it” is antithetical to this ideal.
Privacy protection is not an obligation, but transparency and openness is. Yes, you're not contractually required to not make a separate computer system that's proprietary and closed and disempowering, but that's so pedantic as to be malicious.
So you didn't read the ToS, I take it? I did. I do whenever it's something important to the company's infrastructure. Canonical is the one at fault here for not adhering to Microsoft's guidelines. But Microsoft put the warning on the package.
I mean, it's kind of ridiculous to think that you could do anything in a cloud environment system and not have your actions tracked. Hell, with automated load balancing and load-based billing, that's literally what you're signing up for.
I don't expect an OS based on an OS based on an OS based on a half-finished OS based on free software principles to have shady data-dealing attached, yet hidden from the people whose data is being dealt.