Google could face a fine of up to $1bn for its data privacy policies as new European Union (EU) regulations allow a single regulator to fine companies they feel are not complying with privacy laws.
The new rules, which are currently being finalised, will allow a single regulator to impose fine on behalf of individual national watchdogs.
"The one-stop-shop regulator could threaten a company which does not obey the rules with a fine of up to two percent of global turnover, said "EU commissioner for justice Viviane Reding.
The revision of the current EU data protection rule is expected to take place 2014 and would mandate all countries to levy fines. However, not all countries impose fines.
According to Reding, there are flaws in the current system, resulting in individual countries recognising and punishing privacy violators.
Additionally, EU regulators are planning to take action against Google by summer 2013 over its policy that allows it to collect user data across all of its services.