"The European Union’s top advisory body on online privacy will issue an opinion this month saying that information collected by phone and Internet companies on customer locations must be treated like names, birthdays and other personal data, EU officials say.
That means smartphone giants like Apple Inc. and Google Inc. will likely have to obtain user consent before gathering the data, delete the information after a certain period of time and keep it anonymous." - from WSJ.
Obviously, it means that LBS applications could be affected.
P.S. by the way, it means that Geo Messages approach is getting even more interesting. It lets users share location data on peer to peer basic, there are no servers with location data.