Google may soon get a nasty surprise from the European privacy regulators. Last October, the data protection agencies warned the search giant that its new confidentiality policy didn’t comply with European legislation and gave it 4 months to either make changes or face legal action. In response, the search engine did neither, but claimed the company complied with all laws known to man, including the law of gravity.

European media reports reveal that France’s CNIL data protection outfit claimed after 4 months Google had failed to comply with the EU Data Protection Directive to implement effective recommendations. As such, EU data protection outfits decided to set up a working group in order to “coordinate their coercive actions” that should be started in spring.

In the meantime, European data agencies are planning to hold a meeting soon to approve the action plan. The matter is that Google’s privacy policy that was rolled out a year ago allowed the company to track users and develop targeted advertising.

Soon the Google’s move was slammed in the American and European consumer advocacy groups. For instance, in the United States, the search giant has paid $22.5 million in fines and has re-worded the policy to eliminate the problem.

According to the search giant, its privacy policy simplifies and unifies its policies across its numerous services including Gmail, YouTube, Android mobile systems, social networks and Internet search.

However, the European Union claimed that Google’s policy, which offered no choice to opt out except for refraining from signing into Google services, granted the company unprecedented ability to snoop on its users.

The search giant explained that its move ensured the same level of control over its users that was enjoyed by Apple or Facebook, but the experts admit it wasn’t a strong argument. The EU demands Google to improve data offered to users, especially on the categories of information being processed, as well as for what purposes and services. The data protection agencies also want Google to specify precise periods it is going to hold onto personal information.

According to CNIL, the search giant failed to provide any precise and effective answers to their recommendations, and the situation might get much worse for Google: at the moment, EU competition authorities are separately looking at whether the company has used its search engine to boost its own services.

Google responded with proposals to end the European probe into its dominance of Internet search advertising platforms, but it is unclear whether this line has worked yet.