Here's the story in Google's own words, on the Google Blog: Link. Here's the log retention FAQ: PDF Link.
And here's a snip from the AP item:
Google Inc. is adopting new privacy
measures to make it more difficult to connect online search
requests with the people making them – a move it believes could
prevent showdowns with the government over the often sensitive
data.Under revisions announced late Wednesday, Google promised to
wrap a cloak of anonymity around the vast amounts of information
that the Mountain View-based company regularly collects about its
millions of users around the world.Google believes it can provide more assurances of privacy by
removing key pieces of identifying information from its system
every 18 to 24 months. The timetable is designed to comply with a
hodgepodge of laws around the world that dictate how long search
engines are supposed to retain user information.Authorities still could demand to review personal information
before Google purges it or take legal action seeking to force the
company to keep the data beyond the new time limits.Nevertheless, Google's additional safeguards mark the first time
that a major Internet search engine has spelled out precisely how
long it will hold onto data that can reveal intimate details about
a person's Web surfing habits.
Link. Ryan Singel at Wired: 27bStroke6 has an extensive post on the story here.
Reader comment: quickie says,
This is hardly good news. Which country requires google to save usage data? Google could just keep the connection data and discard/anonymize to usage data instantly.
Colm MacCarthaigh says,
Google's action is certainly to be applauded and welcomed, and hopefully sets an example that many will follow. Somewhat ironically though, European governments may soon be requiring Google to do the opposite. Google servers (including Google search and gmail servers) and Google's European headquarters are located in Ireland. Digital Rights Ireland is presently engaged in a legal battle to overturn the EU directive and Irish legislation which would require service providers (potentially including gmail and google talk) to store this data (and more) for 3 years. As ever, support is needed and welcome.