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In light of the discussions from yesterday, this speculative article comes across as patently wrong.
F-Secure's article on this, http://www.f-secure.com/weblog/archives/00002145.html, shows that the location database is uploaded to Apple twice a day
They make all sorts of claims in that article but never do they show the data is sent to Apple.

Alex Levinson (cited in the above link) actually states that it has not been shown that Apple is collecting this data: https://alexlevinson.wordpress.com/2011/04/21/3-major-issues...

Alex Levinson says that it's illegal to determine the location or movement of a person.

Apple's lead counsel Bruce Sewell says this is not the case as the identifier is randomized, and that Apple does collect anonymous location data from iPhones in an effort to improve its own database of cell tower and WiFi hotspot locations.

See: http://arstechnica.com/apple/news/2010/07/apple-responds-to-...

This article doesn't show anything… It just makes claims.