Google is violating privacy
Firstly the privacy directive they're in violation of is nothing to do with the 'data retention directive'.
Google used the 'data retention directive' as an excuse to why they needed to violate european privacy. They made the false claim that laws like the 'data retention directive' might apply to them, and that was why they needed to keep the data for 18 months.
So what's the game here, it looks like a straight misdirection. We still have the same problem with Google, they keep all your search queries and IP addresses, and if you have a Google account, they have it linked to your emails and surf habits (via Google Analytics & Adsense) and all of this information can be used to identify you.
They are required by EU law to hold only the minimum data, for the minimum time, with the minimum cross linking.
"I would point out that even if the Data Retention Directive were repealed tomorrow, our decision on the factors that went into the right period to retain server logs, the decision to keep them for 18 months and then to anonymise them, it would be the same decision even if data retention were repealed tomorrow,"
You shouldn't even be keeping that data for 18 months, the data rentention directive does not apply to you, it cannot be used as an excuse, quit this double talk and misdirection, stop violating EU privacy Google as you are required to do by law.