Back in 2010, Google revealed that the cars it used to map streets were also picking up sensitive personal information from wireless home networks, and called the accidental data collection "a mistake." On Saturday, however, federal regulators said Google has "deliberately impeded and delayed" its investigation into how the tech giant used the data. The Federal Communications Commission (FCC) ultimately decided Google was free of legal trouble, but imposed a $25,000 fine on Google. The search giant can appeal the fine.

"We worked in good faith to answer the FCC's questions throughout the inquiry, and we're pleased that they have concluded that we complied with the law," said Google in a company statement. The investigation started in the fall of 2010, but did not find any evidence that Google had misused any data gathered through its Street View project. Google's Street View became available in May 2007, offering searchable panoramic views of streets.

The problem occurred when, in addition to capturing images, Google's Wi-Fi-ready cars used for Street View also captured Web surfing data, passwords and full emails. Google admitted two years ago that it had accidentally captured the data, but pledged to delete it and not gather such data in the future. The Federal Trade Commission (FTC) dropped its investigation into the data collection in 2010, before the FCC started its own probe into the matter.

The FCC first requested information from Google in November 2010. In August 2011, the agency threatened subpoenas, but received no adequate response. "Google violated Commission orders by delaying its search for and production of responsive e-mails and other communications, by failing to identify employees, and by withholding verification of the completeness and accuracy of its submissions," states the FCC report. "Google's level of cooperation with this investigation fell short of what we expect and require."

When the agency asked Google to identify the people responsible for the program, the search giant "unilaterally determined that to do so would 'serve no useful purpose'," said the FCC report. "Although a world leader in digital search capability, Google took the position that searching its employees' e-mail 'would be a time-consuming and burdensome task,' added the report. The FCC also noted that Google's main architect, who was not identified, had invoked its Fifth Amendment right against self-incrimination, limiting Google's efforts to learn more about the data collection.

According to statement from FCC Enforcement Bureau chief Michelle Ellison, the investigation "found that while personal data such as emails, passwords and web histories were collected en masse by Google cars driving streets across America, the available information did not prove a violation of the privacy provisions of communication laws." Meanwhile, Google argued it was not in violation of the federal wiretapping laws, as it only collected data from unencrypted Wi-Fi networks.

On the other hand, several countries, including France, Canada and the Netherlands, have ruled that Google's Street View data collections violated online privacy laws or other data laws. According to the FCC report, Canadian officials found "complete email messages, along with email headers, IP addresses, machine hostnames, and the contents of cookies, instant messages and chat sessions...(and) instances of particularly sensitive information, including computer login credentials (i.e., usernames and passwords), the details of legal infractions, and certain medical listings."

In addition, French authorities also analyzed Street View data and found emails between "married women and men, both seeking an extra-marital relationship," for which email addresses, first names, as well as street addresses could be matched. The authorities also found "Web addresses that revealed the sexual preferences of consumers and specific residences," adds the report. According to Ellison, this case "is an important opportunity to educate the public about the vulnerabilities and risks of unencrypted Wi-Fi networks."

(reported by Alexandra Burlacu, edited by Surojit Chatterjee)