Around the time Google introduced their social offering called Google+, they started an exercise of bring together all their products and services. They started with redesigning all their products to bring in visual uniformity. They also introduced Google+ integration in YouTube, Gmail, Google Reader and more.
Now it has brought about a convergence of 60 different privacy policy into a singe one. Well on the surface it looks a lot better for Google users, as a single privacy policy can actually be read and understood and not reading through several ones.
But it has also raised some questions on what happens to the data and how Google will deal with it.
You can check the old privacy policy here and compare it with the new single privacy policy.Google will also integrate all the data, users have across all their products and services. This could be something that it already does through various privacy policies, but now will do it through a single one.
Users might not like the idea of their data being integrated from various other services, but it will probably give Google better way to serve up relative advertisements.
I think most people would be fine with this data being integrated, except with Gmail. People already do not like the idea of advertisements being served up on Gmail. If they see their data from Gmail being used to serve up advertisements on their search results, it might cause some criticisms of Google.
Here is a video explaining their single privacy policy
http://devilsworkshop.org/google-updates-privacy-policy/
[video=youtube;KGghlPmebCY]http://www.youtube.com/watch?feature=player_embedded&v=KGghlPmebCY[/video]