Google's privacy policy that combined different policies under one roof (a common practice in 2012 among different other big companies) was carefully analyzed back in October 2012 by CNIL. CNIL's investigation over Google practices revealed that Google violated the "fundamental rights and freedoms of the data subject,"
European regulators had to punish somehow Google after the company failed to take action. Thus France issued a three month deadline back in June allowing Google to make the required changes to its privacy policy. That deadline just passed and now Google will face consequences.
