Yes. Most companies that offer phone applications require you to give them the right to eavesdrop and spy on you. Here is one such agreement a user gives an app company:
Record Audio–record anything you say and hear while using your phone and record any audible noise, speech in your vicinity. The company can record when you are using your phone and when you are not using it without your consent.
Take pictures and videos–take pics and video with your phone at any time without your consent.
These companies also require users to allow them without consent to approximate their location, send SMS messages from their phones, read their contacts, read, eavesdrop on their calls, modify or delete the contents of their USB storage, and disable the screen lock. Anyone can do the same by purchasing special software:
Utilize Spy-SMS Software. You can install this software onto a cell phone for listening in on someone’s conversation. Once you install this software, you will be able to gain access by text messages. The software contains a remote control management tool that conceals it from the target user’s phone. The software is sneaky and the target users will have no idea that you are monitoring their conversation, when the software is running. The SMS activates the phones external microphone, allowing you to listen to live conversation as it takes place.
Flexispyis a program that works on just about every smart phone, including those utilizing Windows or Blackberry platforms. Although, Flexispy operates on the iPhone platform, the software will not allow you to access the remote microphone feature. However, you can monitor emails and text messages on an iPhone. Once you install the Flexispy software, this will secretly activate the tiny microphone within the cell phone. But, before you do this, you must gain access to your intended target’s cell phone, install the software and then call it from another phone. Immediately, you will gain the ability to eavesdrop on your target’s conversations. Additionally, with Flexispy, you can read a person’s emails and text messages as well as find the individual’s location though the phone’s GPS.
Big Brother has been doing long before the invention of the cell phone. When everyone used landline phones he eavesdropped on them by just activating the microphone in the phone to hear everything being said in a room. He still eavesdrops on millions of Americans using this old technique. With cell phones he can not only eavesdrop, but also (watch) you via you’re the built-in camera. Keep your cell phone covered when you are not using it or in a drawer. When you are at home or at the office keep your cell phone in a drawer to make it harder for BB to eavesdrop on you. Do NOT keep your cell phone in your bedroom when you sleep or engage in carnal activities with your spouse. BB can eavesdrop on your activities and even watch you if the camera is at the proper angle. 
Infowarrior News. 10.15.2012