I'm not comfortable with paying for a practicum that involves doing work for a company, that also pays the school. How to handle this?
I doubt you will have much luck convincing the faculty to change their curriculum, which is subject to institutional vetting on dimensions that even graduate students may never hear about. However, they might be sympathetic enough to your concerns (expressed politely) to grant you the chance to work on a non-corporate problem. If not, expect to grin and bear it -- and do good enough work to put the experience on your resume/CV.