From Apple’s privacy policy:
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.
This is not good, in fact Apple needs to clarify this section – 4 sentences is not enough to make me feel comfortable about what Apple is doing with my location data.