Google has recently changed its terms of service. It has changed them to a new set of rules that allow them to compile data across all of their services: from Google search to Google mail. There doesn't seem to be any problem with this, in my mind. You have given them this wonderful information to tailor the performance of their programs to your liking. It is also really really smart for Google to do. They get 96% of their revenue from ads, so if their ads are better tailored towards you, you will enjoy the search process more, and Google gets more money. You needn't worry about the privacy issues, as Google will hold your information tight to it's chest -- you can trust them indeed. While it is true that someone could hack Google's servers, that chance has always existed -- as small as it is.
So, don't be worried about this new change. It will probably lead to a very concise and small licence agreement -- understandable by humans. That is a feat few companies can achieve, so congratulations to Google.
I tend to agree with you, because most of us wouldn't frown on a real world, concrete products business that did the same in order to serve its customers better. Make sure to be a little more punctual next time!
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