Apple was on the receiving end of some heavy handed flak for their location-based tracking services, and Microsoft might be walking in their shoes right now after a recent class action lawsuit that was filed in a Seattle district court claims that Microsoft’s Windows Phone 7 operating system also collects users’ location data, and to make matters more intringuiing – this happens despite users being given the chance to opt out.

Why would Microsoft bother to offer users a “choice” which is then ignored? That is certainly a strange move for the software giant to make, and where does the offending code lie? Well, it currently resides in Windows Phone 7′s camera application, and this was discovered by Samy Kamkar who determined that location and identifier data were being transmitted regardless of your earlier choice – heck, even beginning before you had a chance to make your decision on-screen.

According to the lawsuit, Microsoft’s actions might be part of a plan to develop a location-aware marketing system which would result in ad generation depending on where you are at the moment. Since Apple was successfully sued for this infringement, it does not seem as though Microsoft’s chances will be any brighter.

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