Google has not responded in a timely manner to the French data protection authority's demand that it make changes, and will now face sanctions in the form of a fine of more than $400,000. Google maintains their policy respects European laws.

Source: http://feedproxy.google.com/~r/sewblog/~3/27kR9Bi7bvA/Google-Faces-400K-Fine-in-France-Over-Privacy-Policy
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