(Disclaimer: I'm an engineer at Google)
Either you have no clue about what is going on in your company or you are here as a PR guy.
I really hope that GDPR will hit you hard, as far as I am concerned you are far worse than Facebook, more harmfull than Monsanto, you have opened Pandoras box of user tracking and becoase of you now every single company is doing it. And just so you know, by writting this, my karma will fall for at least 10 points as your fanbase (which typically doesnt even understand what I have written) will downvote me a lot. I am telling you this just for you to understand how very pissed off on behaviour of your company some people are. The only thing that is into your favor was actually your biggest mistake - you have mistakenly made android open source which makes it far more feasible to silence it down to the point where it no longer communicates with your domains. This was maybe when you were still having the "don't be evil" attitude, at least as form of PR.
When you log in to a service (eg. Google), the device doesn't "silently" communicate with the servers, you asked it to. It sends a request with credentials, as it should. That request naturally comes with an IP address, which can be mapped to a rough location with no further information by the client.