That's what is freaking everyone out all of a sudden. I can't believe nobody realized that is and has been the case for a long time now. That has been a real possibility before Eric Schmidt said it and it doesn't just apply to Google. ISPs, hosts, any communication provider can have their data subpoenaed. The only way for them to guarantee their users privacy is to not retain data (and Google's business model revolves around storing and organizing large amounts of data).
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I like pie.
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