App Privacy Questions Requirement and AdMob

You do need to answer "Yes" to this question. In the legal agreements that you agree to to show Admob advertising, you, the developer, are the one who collects the data and sends it to Google. Google are not legally responsible for privacy issues. As Apple says, you are responsible for the data collection practices of all API's that you include in your app - see https://developer.apple.com/app-store/app-privacy-details/

What data the API collects? Google when asked that I've seen have tried to avoid this question. Some others have said "look at our privacy policies".

I also show Admob advertising, and I've decided to move forwards and remove Admob from most of my apps. Any Admob revenue you get will drop significantly in the new year when users need to grant permission to view the IDFA on their device which is a major component required by Admob currently to make their system work.

Update - Admob have published the answer, but I can't link them as this website does not allow posting the link. You may wish to search Google for "Prepare for Apple's App Store data disclosure requirements" in order to see the data that they use.

There's an article on Medium now that walks you through the survey from the point of view of an AdMob user, you can find it by searching for "Filling out the App Privacy Section in App Store Connect for AdMob Users".

Although I have to agree with @Pete, the new requirements make AdMob significantly less attractive as a revenue source.

Thank you @Pete and @HVtech.
And what about the App Tracking Transparency authorization request made in the app? It's not mandatory, yet. Is it?
I also found a SO post titled: App Tracking Transparency How does effect my exsting app? : IDFA iOS14 that may help others who, like me, are struggling with this.

From my understanding, below iOS 14, tracking and personalized ads are still allowed. While in iOS 14 the IDFA is hidden and we need to ask for permission to use it.
In 2021 Apple will force everyone to present the ATT alert. The IDFA system can be "substituted" with Apple's new SKAdNetwork API which it seems it's going to help "advertisers measure the success of ad campaigns while maintaining user privacy". We'll see how it goes

I think Google Admob's document is not clear enough and leaves many questions unanswered. I don't want the ad providers track my users, but I have no idea how can I achieve this, or whether it is possible or not, with Admob. Their documentation is not clear enough.

I am a solo developer, and I don't have lawyers to ask questions. Considering that all legal responsibility of collecting data from users is on my shoulders I need simple and clear answers.