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I'm not ready to assume one or the other. That apps have this sort of access seems unlikely. That the underlying OS is turning cameras and microphones on and off at will is possible though. But if this was real; some hacker with too much time would've mitmproxied that already

You can tell me this, but true story, this happened on Saturday: I open the fridge and notice my kid has purchased a bottle of Overnight Oats. No internet, just have a brief chat. Immediately I start getting ads on Instagram from Overnight Oats. And then, cherry on top, your post! What a day.

In a way they kind of do. If you use a voice activated assistant, they are at liberty to record your voice commands (after the trigger word) for targeted ads.