WSJ: Google's Android phones track users, just like Apple products

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Cellphones have many reasons to collect location information, which helps provide useful services like local-business lookups and social-networking features. Some location data can also help cellphone networks more efficiently route calls.

Google also has said it uses some of the data to build accurate traffic maps. A cellphone's location data can provide details about, for instance, how fast traffic is moving along a stretch of highway.

The widespread collection of location information is the latest frontier in the booming market for personal data. Until recently, most data about people's behavior has been collected from personal computers: That data generally can be tied to a city or a zip code, but it is tough to be more precise. The rise of Internet-enabled cellphones, however, allows the collection of user data tied with much more precision to specific locations.

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