• by Wendy Davis , Staff Writer @wendyndavis, September 2, 2008

In its latest challenge to Microsoft, Google has launched its own browser, Chrome.

The new browser is touted as faster and less crash-prone, partly because it launches each application in its own window. Additionally, if a particular site is taking up too much memory, the browser's task manager will reveal this to users, allowing them to close out of just that site without shutting down the entire browser.

Also, much like Microsoft IE8's new "InPrivate Browsing," Chrome will have an "incognito" mode that lets people surf the Web without storing data about sites visited on the hard drive.

But, as with InPrivate Browsing, the privacy benefit is somewhat illusory. Users could always delete their own cache files or cookies manually. What's more, Internet service providers will still have access to all sites visited.

In fact, the browser raises significant privacy questions. Google states in the Chrome privacy policy that it will log the IP addresses of people who download the browser. It also says that all URLs or other queries typed into Chrome's address bar will be sent to Google, which will use that information to make suggestions to users.

The browser's privacy policy says it will "process" information received from Chrome users but -- in a crucial omission -- doesn't say whether it will retain the data or for how long: "Information that Google receives when you use Google Chrome is processed in order to operate and improve Google Chrome and other Google services," the policy states.

Of course, that sounds very similar to Google's rationale for retaining IP logs that couple users' address with their search queries -- that such logs can help the company improve its search results. The problem is that it's not that difficult to connect IP addresses to specific users when you also know their search or browsing history.

Yes, Chrome will give users tools to control the information stored on their own computers, but that only offers limited privacy benefits. The real question is whether users can stop Google from storing information about them.