Google's new standards which were enacted in March have involved pooling user data from all its services, including Gmail, YouTube, Android mobile systems and the company's Internet search engine. Google itself said the move aimed to improve user satisfaction.
But France's National Commission of Information Technology and Liberty (CNIL) which led the EU probe into Google claimed that the new rules did not include any limits on the extent of data collection and their commercial use.
"As a result, a Google user is unable to determine which categories of data are processed in the service he or she uses, and for which purpose these data are processed," CNIL said in a statement.
Google not convinced
According to EU regulators, Google had also failed to say how long it intended to keep user data. They recommended the US firm give users an opt-out on having their data pooled which would go a long way towards bringing Google's policies in line with EU norms.
"Google has a few months to comply," regulators said. "If it takes no action, we will enter a phase of litigation."