The Google App Engine is governed by Google's general privacy policy . They promise not to exchange information outside of Google, except in certain circumstances (court order, etc.), and they restrict access only to those employees who need it. However, since they may use your data to “provide, support, protect and improve our services”, Google may use your data for their own purposes (maybe not, but I don’t see anything that prevented them).
Disclaimer: I am not a lawyer. In addition, this policy does not provide GAE-specific information.
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