In my opinion these changes being made by Google are related to the recent closures of certain "Pirate Sites", as it was indicated they (Google) may have been facilitating the use of illegal copy write protected material through the use of their search engines. Their new policy seems to indicate that information will be collected and when deemed necessary passed onto Authorities when requested :
Quote:
Enforcement
Google complies with the U.S.-EU Safe Harbor Framework and the U.S.-Swiss Safe Harbor Framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of personal information from European Union member countries and Switzerland. Google has certified that it adheres to the Safe Harbor Privacy Principles of notice, choice, onward transfer, security, data integrity, access, and enforcement. To learn more about the Safe Harbor program, and to view Google’s certification, please visit the Safe Harbor website.
Google regularly reviews its compliance with this Privacy Policy. When we receive formal written complaints, it is Google’s policy to contact the complaining user regarding his or her concerns. We will cooperate with the appropriate regulatory authorities, including local data protection authorities, to resolve any complaints regarding the transfer of personal data that cannot be resolved between Google and an individual.
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The full "New Policy" can be viewed at Google