Google currently has 70 different privacy policies governing how data is collected and used in each of its applications. For each of these, such as YouTube, Gmail, and Google Maps, you've agreed to a different set of how your information will be shared.
The company is now unifying 60 of these different privacy policies into one, stating that most of its sites and applications can share data freely amongst themselves, leading to potential innovations such as Google Calendar informing you that you're going to be late for a meeting based on your Google Maps/Latitude position, or perhaps building a playlist for YouTube based on what someone was emailing you about earlier, or loading up a song in your Google Music player that a friend purchased in the Android Market and shared with you. It could be neat.
The new policy will take effect March 1st on 60 of Google's properties, so it should be significantly easier to read and much less evil-seeming (or more, depending on your worldview). You can read more about the new policy here.[Google Blog]