To summarize the new policy, Google may combine information that you’ve provided in one service with information provided in other Google services, thus treating you as a single user across all Google products. Because of this merge and de-compartmentalization of data, Google users are becoming less and less anonymous, and all your user data history will now be explicitly cross-referenced. Google says this step will create a more seamless “user experience.”
Google is strongly defending the new policy despite its recent spar with Microsoft and criticism from some members of Congress. Based on Google’s assertiveness, it seems like the policy will pummel through all the controversy and roll out without any changes, and Google account holders might just have to either face the music or switch to other services.