On android, a lot of APIs that have nothing to do with GPS (such as watching wifi networks, looking for devices on the same network, etc.) actually need the "location data" permission.
This is misleading, but it is made so because one could potentially use data harvested through those APIs to infer your location (for example, if an app has a map of wifi networks, knowing which networks are around allows it to infer your position)
This is misleading, but it is made so because one could potentially use data harvested through those APIs to infer your location (for example, if an app has a map of wifi networks, knowing which networks are around allows it to infer your position)