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In a freewheeling talk to close Google's European Press Day, CEO Eric Schmidt touched on a number of subjects including the importance of user-generated content, questions of trust and privacy, Google versus Microsoft, doing business in China, the iPhone, and the need for Google to respect the laws of nation states.

Speaking at the company's European press day in Paris, Schmidt claimed users could easily desert Google's services. "I'm extremely sensitive to this issue," said Schmidt. "If people stop trusting Google, then we have a problem. Everything is gated on this issue. Our rivals are only one click away."

We asked Schmidt how a company that stores and processes data on a global level could realistically comply with each country's data regulations, such as the UK's Data Protection Act. "That's a question we are always asking in staff meetings, but it is something we have to do," said Schmidt. "The best approach is to be open and transparent," he maintained.

Things aren't always clear cut, however, he admitted. Dealing with data in 240 languages, it wasn't always clear whether a particular piece of data may be governed by Brazilian law, for example, or US

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law. "We have to take it on a case-by-case basis," he said, but insisted that Google had to respect the laws of the countries it operated in.

"Anyone who thinks the internet is borderless hasn't paid attention to the people going to jail," Schmidt added.

Could the US demand access to data on other countries' citizens? "In principle, it is possible," he admitted. "In practice, however, it is essentially impossible, because of all the processes they would have to go through."

He was sensitive on the issue of Google putting "pressure" on governments in regard to data retention laws. "I'm sensitive to the use of such tough words," he said. "We are not a country, we do not have any nuclear bombs."

Personal search

Strong data laws haven't curbed Google's personalisation plans, however. "Personal Search is perhaps the next big phenomena," he said. "The best search is a personal search, one that you can control. 'I know what I want, I know what I like, better than anyone else'."

Citing users' desires to customise and adapt, he highlighted the "unexpected" success of iGoogle, the customised homepage. "iGoogle is the ringtone of Google," he joked.

The wider goal to achieve perfect search results is still distant, however. "We are trying to close the gap between what I mean and what I type," he said. "If I type 'Paris is hot', do I mean France is warm or the girl in a jail in California?..."