Google's new policy, which consolidated over 60 different privacy documents, came into force in March 2012 amid concerns by European regulators that it violated the European Directive on Data Protection.
Last October, European authorities, led by CNIL (Commission Nationale de l'Informatique et des Libertes), demanded Google better inform its users about the changes, clarify how data is shared between different Google services and provide precise data retention periods.
Despite being given four months to comply with European data protection regulation and implement the Article 29 Data Protection Working Party's recommendations, Google hasn't responded, CNIL said on Monday.
It's not the first time European watchdogs have found Google less than forthcoming on the subject of privacy: in January 2012 the regulators accused the company of providing "incomplete or approximate" answers to questions about how data would be handled under the unified policy that they had raised at the time.
"In this context, the EU data protection authorities are committed to act and continue their investigations," CNIL said. The watchdog will now lead a proposed working group to determine Europe's next move on the matter. While it hasn't set out what action it may take, it expects it to go ahead before summer.