Outsourcing constitutional violations is not a new idea. Think of all the. "Private" businesses that engaged in (before covid, when they weren't paranoid about every object they touched possibly being contaminated with the virus) unreasonable, warrantless, searches: theme parks, concerts, hotels, etc.
It's still a police state even when it's "private" businesses doing the policing (particularly under influence and pressure from the government. Facebook didn't start censoring people out of the blue. They were encouraged and pressured to do so by the government.)