In iPhones, ‘App Tracking Transparency’ is one of the useful iOS 14.5 features that taking the privacy moto of Apple to the next level.
It ensures that any app must ask you for permission to continue tracking your movements or sharing your personal data with advertisers.
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Go to Settings > Privacy > Tracking. You’ll find an option ‘Allow Apps to Request to Track’ that you can toggle off. This ensures that no apps can bother you with their data sharing demands.
Otherwise, if you leave this on, whenever you open an app that wants to collect data, a pop-up will ask ‘Allow [App name] to track your activity across other companies’ apps and websites?’ You can choose ‘Ask App Not to Track’ or ‘Allow’.
If an app doesn’t ask you, then that means (in theory) that the app doesn’t track this data, so it doesn’t need to ask permission.