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If I'm using a mobile hotspot, it would be useless to log its location. Anyway, maybe I just don't want my home router on a Google map.

It's not like they're breaking into your house and stealing private information. Your router is broadcasting your SSID.

Yeah but locally, not to the whole internet.

Doesn't the phone have to be local to the AP in order to get the MAC to send to Google for the location?

Google doesn't broadcast it to the whole internet either: they just use its position for clients which happen to be near your AP.