You can start a company with the best intentions, but when that company grows into an enormous entity like Google, it starts being so important to itself that those intentions often take a back seat to company's ambitions.
After Google's CEO Eric Schmidt's little talk about privacy, in which he basically said that only those who have something to fear (i.e. who have done something wrong) care about privacy, the reactions are coming in. Mozilla's Director of Community Development Asa Dotzler invited users in a blog post to switch from Google to Bing, pointing out that Bing has a better privacy policy than Google.
Here's the part of Schmidt's speech that irked Dotzler:
"If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place. If you really need that kind of privacy, the reality is that search engines -- including Google -- do retain this information for some time and it's important, for example, that we are all subject in the United States to the Patriot Act and it is possible that all that information could be made available to the authorities."