That's a good question
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The data is less about what you are personally doing and more things like which device does a user have, which country is a user from, how often do they use the app, and how often do they click on ads.
You can dig more into what admob means by usage data here: https://support.google.com/admob/answer/9263723
Yeah, I saw this too when I went to download, and this bothers me a little bit. None of the other Lemmy apps I use collect my data.
Is this decision set in stone?
Will you be able to one-time-pay beforehand? Before all these trackers take effect or will they still stay after the purchase? Pretty hard to consider a non-FOSS app that tracks you even if you pay. Might be great for lemmy's adoption but not for the fediverse' spirit.
All the tracking code is in the ads library which isn't loaded after paying to remove ads.
Some quick search engine magic led me here: https://levelup.gitconnected.com/filling-out-the-app-privacy-section-in-app-store-connect-for-admob-users-bca0768ad86e
Same search engine magic should come up similar results for the Amazon usage data too