European Union Gives Google a Privacy To-Do List.

European privacy authorities asked Google to modify its global privacy policy in order to give users a better understanding of what personal data is being collected. They stated strong doubts about Google's privacy and suggested that it might violate their privacy rules. 

Critics argue that it allows Google to collect more information about consumers as they use the various services in Google's "colossus"  and then collect that customer data to create a more-informed picture of the user.

Google tries to explain that privacy changes will not affect users. In fact they say:

• The approach to privacy has not changed.
• Google users continue to have choice and control.
• The privacy policy changes will not affect users existing privacy settings.
• We’re not collecting any new or additional data about users.
• We are not selling our users’ data.
• Our users can use as much or as little of Google as they want.
• We will continue to offer our data liberation tools.

 No consensus between EU and Google has yet been made. The privacy case is still under progress.

More info here.