Cloaking is one of the search engine optimization (SEO) technique in which the content displayed to the user varies from the one showed to search engine or googlebot. Google uses geolocation, where it displays the target audience with the content related to their location that is assessed of the user based on the IP address of the user or through the cookies that have been stored.
It can be said that geolocation is not similar to cloaking if it does not provide special services to googlebot. Googlebot is Google software which crawls through various web documents to gather its own index for the search engine. For now, Googlebot only goes through US based IP address where the US visitor will search for the page and the content will be similar to that displayed for Googlebot.
Geolocation is fine until it only displays the content based on the physical location of the visitor, but it will be a matter of concern if the program has some coding where some special services are offered for Googlebot based on the user agent or IP address. If this is not the case then there is nothing to worry since geolocation will treat all the visitors with equal importance and show the same content to everyone without any discrimination.