When Google instituted a new privacy policy early last year, European regulators warned that it was likely illegal under European law. In October, the regulators fired a shot across Google's bow, telling the search giant that it needed to address their concerns or face legal action in 2013.

Now European privacy regulators are preparing to act, according to Reuters. The regulators' next step—setting up a new working group to coordinate the responses of privacy regulators in the EU's 27 member countries—isn't likely to strike fear in Larry Page's heart. But the regulators say they expect to take coordinated enforcement action against Google by this summer.

The dispute focuses on Google's decision to share data more liberally among its own products. Previously, Google had dozens of different privacy policies for its various products, and these policies often prevented the search giant from aggregating data gathered in different products. Last year, Google replaced all these separate policies with a single, company-wide policy. It touted the new policy as easier for users to understand, and it argued that more data sharing would allow the company to more effectively customize its products to the needs of each user.

But the change raised the ire of some privacy advocates. They worried that liberal sharing among Google applications would undermine users' privacy. Google, they thought, might take information it collected for one purpose and use it for other purposes that users might not expect or appreciate. And regulators in Europe, who often follow a much stricter regime of privacy regulations, seem to share these advocates' concerns.

Google tells Reuters that its new approach fully complies with European law. It says that its January filing with European regulators detailed the steps it had taken to address their concerns. But evidently the regulators weren't satisfied, and they're getting ready to do something about it.