Big brother is everywhere
I remember the time when computer users worried about spyware which was referred to as malware because it could potentially harm your computer or you (for example by stealing banking information). It seems that this has all changed and spyware is nowadays willingly installed by millions of users - as apps on their smartphones. If you were not aware of this you should read this little article published by the SmartMoney magazine: 10 Things App Developers Won't Say. I guess the main difference between an app and spyware is that the user willingly agrees to the terms of use (although sometimes these are not adequately explained) when installing an app, whereas spyware tries to collect info without your explicit consent. As someone who grew up in West Berlin, an island in Stasi controlled East Germany, I just cannot fathom why anybody would make the conscious decision to be spied on. Maybe I am just a hopeless idealist, or the day will come when app users rise against dot-coms who seem to see their clients as a big herd of cows that live to be milked.
TaintDroid
Researchers have tracked android app behaviour and published the results.
http://appanalysis.org/index.html
A quote:
I have not had time to read into this properly, but it appears there is unfortunately no available app which will do this kind of low-level tracking of where your information goes exactly (the researchers had to hack the OS itself, I think).
Ideally one would want a firewall app which lets you decide which app can do what exactly.
Of course with closed-source systems such monitoring by end users or academics may be impossible.
Digg user "deslock", who says they are an app developer posts the following useful summary of privacy policies for the major OSes: