Summary
Google has been seriously challenged by several EU countries ( such as Germany,Greece and now Switzerland ) as to its claims that it is within its legal rights re privacy infrigements via Street View and other related services .
In the light of mounting abuse of GPS data via serious hackers ( even institutional spy networks ) it is hardly any wonder that EU has taken a tougher stand ( compared to USA ) regarding data protection regulations and laws even for private individuals.
Analysis
1. Google needs to demonstrate restraint and pacify these authorities as to its ability to strike a balance in order not to jeopardize what is a serious market opportunities now that it is offering these apps via smartphones using Android OS.
2. There is clearly no justification for photographing and making available to public at large such levels of details as car license plates,individual faces etc. ( especially in sensitive locations such as hospitals,prisons or schools).
Core use of GPS data for routing/mapping does not require this level of detail.Google should focus on this core usage or risk a spate of lawsuits which would not help its market prospects and reputation.
3. Scope for abuse by criminal elements is vast as already demonstrated by several terrorist groups who have targeted such locations.
4. If institutions dealing with such level of details are deemed to legitimately need this information ( such as anti crime agencies ); this should be carried out and used within the confines of appropriate legislation.
Special groups such as serious spy networks who could very easily abuse such data at or near facilities such as army bases,defence/security establishments are of special concern.


