Via http://cio-today.com

[...]In April, Internet users typed a staggering 3.77 billion searches into Google, according to statistics compiled by Nielsen/NetRatings Inc. That total accounted for just over fifty-five percent of all searches; Yahoo Inc. was second with roughly twenty-two percent of all searches.

In exchange for rapid answers to Internet searches, Google collects and stores a range of information about each searcher, including the query, the date and time, and the physical location of the computer from which the query was made. Even more specific information is logged if the user has installed the Google Toolbar and enabled the Web History feature.

Now a European privacy work group has written to Google, putting the search engine giant on notice that it is concerned about Google's data-retention policies and asking for additional information. [...]
Link: http://www.cio-today.com/news/EU-Questions-Google-Data-Retention/story.xhtml?story_id=13000BY3SQIU

You see thats what I love about the EU. You can have your illegal downloads legally and we'll blame the ISP's for you but you can't do a simple little thing like keep every single personal detail you can about someone (except their age).