Mountain View (CA) – Google is threatening to pull its free Gmail service from Germany if new data retention rules are put into place.  Germany’s Federal Ministry of Justice has introduced a bill that would mandate ISPs and email services to retain information.  So far the draft bill hasn’t been voted upon by the German parliament, but Google is already saying that the law could be a “heavy” blow to privacy.

Basically the proposed law would effectively ban anonymous data by requiring companies to retain phone call information and text messages for six months starting in 2008.  Internet addresses would also be tracked.

Google recently tried to appease European privacy concerns by agreeing to anonymize search information after 18 months instead of the current 24 months.

Gmail is used by millions of people around the world as a primary and secondary email box.  The service requires new users to give their first and last name, but makes no attempt to verify the information.