( CNN ) -- European regulators need effective deterrents to stop Internet companies breaching data protection laws , according to the European Union justice department . The call comes as data watchdogs from the UK , France , Spain , Germany , Italy and the Netherlands team up to launch a joint action against U.S. search-engine giant Google over alleged breaches of EU privacy rules . The joint action by Europe 's heavyweights is a response to Google 's announcement in January on new privacy settings . The Mountain View-based group said it collects and compiles data about its users based on their activity on its various sites -- from its search page to Gmail to YouTube to phones running its Android operating system . Yesterday , it was announced that Google 's first privacy director , Alma Whitten , would be stepping down after three years in the job . Read more : Opinion : Is the social web an asteroid for the Google dinosaur ? The current EU rules only allow for fines of up to 1 million euros ( $ 1.3 million ) on corporates that breach data protection sanctions . But a new EU-wide directive that could come into force at the end of this year will give regulators the power to impose penalties of up to 2 % of a multinational 's global annual turnover . Mina Andreeva , a spokesperson for EU Justice Commissioner Viviane Reding , told CNN that Google has not followed up on the `` concrete recommendations '' made in October last year . Read more : Google launches monthly user-activity feature . Andreeva added that new rules are designed to give regulators `` teeth '' and ensure that companies respect consumer privacy . `` We need effective and deterrent sanctions , '' she said , `` If a big international company is fined 1 million euros , they just laugh about it and continue breaching data privacy . '' In a statement , a Google spokesperson said : `` Our privacy policy respects European law and allows us to create simpler , more effective services , '' adding that Google would continue to engage fully with the data protection authorities on the matter . Read more : Solving 'the Google problem ' key to Internet 's success . Andreeva rejected the idea that the new rules will deter U.S. or non-EU companies from investing in the 27-nation single market but said that customers are not willing to trade privacy for money . `` They [ Google ] have a market opportunity with 500 million potential customers and this is an opportunity not to be missed but they must respect the data protection rules that we have , '' she told CNN . In March , Google was hit by a fine from France 's privacy watchdog , CNIL , over data obtained mistakenly through the company 's Street View service . The 100,000 euro fine was the largest ever dished out by the French regulator .
Current EU data privacy rules only allow for fines of up to $ 1.3 million on corporates . Joint action against U.S. search-engine Google over alleged breaches of EU privacy rules . In March , Google was hit by 100,000 euro fine from France 's privacy watchdog , CNIL .