By default, Android collects a bunch of data, like battery usage and how fast the internet in which you’re connected to, these data can be useful but in most of the cases, it’s not really needed to share it with other devices or Google.
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Google also details how it uses this information on the Usage & Diagnostics support page.
For example, Google can use usage and diagnostics information to improve:
Some aggregated information can help partners, like Android developers, make their apps and products better, too.
This is, in my opinion, a bit pointless and not necessary because you can help partners and Android better with debug logs instead of constantly sending some ‘garbage’ information which only goes into the trashcan or are only been used for some statistics.
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The opt-in/opt-out option is there but it’s unclear why always everything is opt-out, it would be better when everything would be off to ensure that no data are been leaked.
Starting with Oreo Android is more and more relying on the Usage & Diagnostics sharing feature to crowdsource data like battery usage, wifi network signal strength and more. The good thing is that Google provides the ability to opt-out if everything in this case but the bad thing is that the user need to know were to find thee options and what they really do, for most people this is not really comfortable and this means they need to read some background stuff or google documentation - This is not dramatically but we all know only a handful people really care about data privacy in the real world because it takes a lot of time to configure everything and this is already for most people a no-go.
The better logic would be if Android would just ask you within the initial setup/installation process what you would like to share and I hope that this will be one day the default option.