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Google tweaks their privacy policy.

After conversations with E.U.'s national data protection authorities, the search behemoth will anonymize (make it untraceable to you) it's server logs earlier.

I never understood peoples' deal with online privacy. The whole point of building a massive network of computers was so people could share and collaborate, not hide behind screen names and IP spoofing. I guess since people surf from home they feel it's a private activity, like most of what you do at home. What everyone should keep in mind is that everything you do on a computer is traceable. At home, at work or anywhere. What you do on a computer or a network can be recorded and played back.

So Google announced that they'll anonymize their search server logs after 18 months (previously set at 18 to 24 months). Why would they keep this information at all? Well, let's get it from the horse's mouth:

We have a legitimate interest in retaining search server logs for a number of reasons:

to improve our search algorithms for the benefit of users
to defend our systems from malicious access and exploitation attempts
to maintain the integrity of our systems by fighting click fraud and web spam
to protect our users from threats like spam and phishing
to respond to valid legal orders from law enforcement as they investigate and prosecute serious crimes like child exploitation; and
to comply with data retention legal obligations.

If Google weren't making money hand over fist, I'd almost feel sorry for them. First they build the first usable search engine, turning the Internet into something useful overnight. Then they end up with privacy group on the one side saying there doing something wrong by holding onto data, and law enforcement agents on the other side saying they're doing something wrong for not holding on to the data. Well, at least they have the dough for the lawyers.