The Carrier IQ fallout continues as more and more information surfaces about the smartphone spyware. The user-tracking software was exposed earlier this week when a 25 year old systems administrator posted a startling video of it in action.

The video has prompted investigations, both here in the States and abroad, as government officials seek out more information on the eery application. In fact, Apple is having to answer questions from German regulators regarding the Carrier IQ agent…

Bloomberg is reporting this morning that the iPhone-makers and its use of Carrier IQ have caught the attention of a German regulator:

“The Bavarian State Authority for Data Protection sent a letter to Apple today to request information about the software, Thomas Kranig, head of the office, said in an interview.”

Of course, Apple announced yesterday that it would no longer be using the Carrier IQ app in iOS 5. But an investigation could certainly be launched into its previous existence in Apple software, as Carrier IQ was found in several older versions of iOS.

If you haven’t noticed yet, wireless carriers and handset manufacturers are doing everything they can to distance themselves from Carrier IQ. As MG Siegler points out, that’s not a good sign. It makes you wonder what type of data the software was really recording.