Google's Privacy Policy reads.
If you choose to enable Search Across Computers, Google will securely transmit copies of your indexed files to Google Desktop servers, in order to provide the feature. Google treats the contents of your indexed files as personal information, in accordance with the Google Privacy Policy.
Got to understand. The whole of the file is regarded under Privacy policy, just like email address, credit card number by other sites.
Eitherway, its the owners take.
How often would we need this feature and how helpful would this be?
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