AVG’s Self Proclaimed AntiVirus App A Spyware??

AVG released an app in Windows Phone Marketplace yesterday. They went on to describe the app as an Antivirus app that protects Windows Phone from viruses and malware also they will update the virus definitions regularly. I seriously doubt their intention on releasing their app. Its not possible to create a true AV app for Windows Phone because Microsoft doesn’t allow any access to file/storage of apps. Also this app from AVG just searches for files with particular precoded useless names(Rafael Rivera of withinwindows confirmed it). Apart from being an useless app, the app also collects users location information for no reason( Justin Angel, Silverlight developer confirmed it) . Already, Brandon Watson from Microsoft  is looking into this matter, I guess the app may be removed for violating marketplace requirements.