Privacy policy costs Google dear

The CNIL agency said on Wednesday that Google's new privacy policy -- which applies to all of its services from e-mail to calendars -- isn't specific enough about how and why it collects data from users and doesn't define how long it keeps such data, among other problems. EU authorities also have said the new privacy policy doesn't follow their rules.

Google has contended that its new policy is simpler and complies with European law.

Since the company did not change its policy as requested, the CNIL said it is fining Google. The agency also asked the search giant to post a statement about the decision on its French home page, google.fr.

In a response, Google said that throughout the process with the CNIL it has made clear its privacy policy "and how it allows us to create simpler, more effective services."

The statement did not say whether it intends to quickly pay up. "We'll be reading their report closely to determine next steps," Google said.