To provide location-based services on Apple products, Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device. This location data is collected anonymously in a form that does not personally identify you and is used by Apple and our partners and licensees to provide and improve location-based products and services. For example, we may share geographic location with application providers when you opt in to their location services.
Some location-based services offered by Apple, such as the MobileMe “Find My iPhone” feature, require your personal information for the feature to work.
As is always the case, when word of this story first broke, a number of people got worked into a tizzy without realizing that Apple has a “Location Services” option in the system settings that can be turned off to prevent, in one fell swoop, all apps from acquiring location data.
Moreover, user location info turned off by default, and users must opt-in if they want to activate it in the first place.
via LA Times