In the article you refer to, I see no mention of asking user's permission. However, I remember, when using an old version of Android, there indeed was a popup nagging me to allow sharing location data with Google every time I enabled GPS. Very annoying, makes you want to never enable GPS in the first place.

Regarding the government, the problem is that many people do not fully understand the mechanism of collecting the data. I remember the case when members of US military disclosed the location of secret objects through fitness tracker app. And they were probably smarter than average smartphone user. Obviously it would be better if enabling GPS required an approval from their commander.