Irrespective of ones own feelings about this particular app: isn't it interesting that Google and Apple have the power to collect all our location data, but can refuse our democratic governments access to that data even on a voluntary basis?
There seems to be a bit of a "We're the government, so they'll have to do what we ask/tell" going on here I suspect. Probably coupled with incompetent IT project management that didn't bother to worry about the terms and conditions they signed up to, because that was too hard.