A software like this could potentially turn into a government malware (software with malicious intent). Optional tools like covid nearby activity are fine, because they are optional. As soon as you are forced to install a software that stores your extremely sensitive data, on your mobile and any device really (like in order to verify if you can watch this particular movie on your telly), its a slippery slope to me. Governments have a long track of making apps that are half assed and vulnerable to malicious attacks.