Google has been fined A$1.4 million by the Spanish Agency for Data Protection for breaching the nation's privacy laws.
Earlier this year, six European countries were advised by CNIL, a French independent regulatory body that ensures data privacy, to investigate the tech giant's privacy policies.
Spain is the first to take action as a result. It said Google did not properly explain why it collects data on users and for how long it keeps the content, and did not give users enough control over who can see the data.
"Google unlawfully collects and processes personal information," the agency said.
"The agency considers that Google seriously violates the right to the protection of personal data."
Other countries also looking into potential violations include Italy, Germany, France, the Netherlands and the UK.