EU data protection supervisor Peter Hustinx said if the Google service eventually is offered in EU countries, the technological feature could cause privacy problems under current legislation, the EU Observer said Friday.

"Complying with European data protection law is going to be part of their business success or failure," Hustinx said of the potential Google expansion. "If they would ignore it, it is likely to lead to (court) cases, and I think they would be hit hard."

The "Street View" function allows users to not only focus on people using satellite technology, but take photographs of such unsuspecting individuals.

An online posting by Google said the Internet group was actively attempting to introduce new technology which should minimize any privacy concerns, the Observer said.

"We're taking this opportunity to test our new face-blurring technology on the busy streets of Manhattan," the U.S. company said online.