We can’t avoid that any more than the government can avoid criminals having unbreakable encryption.
I mean, we can; we just don't. It's not like there's something baked into the laws of math that says your society is required to be a surveillance state (unlike encryption, where the laws of math do say this is always possible).
It is absolutely within the realm of technological possibility to build a society with largely decentralized infrastructure that doesn't constantly phone home to report on you to the Great Eye. We don't live in that world because normal people are kinda retarded. In the words of the creator of the Great Eye itself: "They trust me. Dumb fucks."