Two years ago, the watchdog told Google its disclosure to users on how their data was being treated was inadequate, giving it 18 months to comply fully and indicating a series of measures that needed to be carried out.
The move was one of several privacy challenges against the US Internet giant in the European Union, highlighting the bloc's desire to ensure its citizens' data is treated according to EU law, even when held in foreign jurisdictions.
In a note, the watchdog said it was pleased with the agreement but added the monitoring of Google would continue.
"We will continue with checks, in tandem also with other European regulators, so that users' data are increasingly protected and their rights recognised by web giants," watchdog president Antonello Soro said.
Under the changes agreed, Google will have to make clear to users how their data is used and will not be allowed to use data to profile users without their prior consent. Users will be able to withhold or grant partial consent.
Google will also need to improve how it stores data and guarantee its deletion within a specified timeframe.
"We're pleased that the Garante (watchdog) has acknowledged the steps we have taken to ensure compliance with Italian law and improve user control," a Google spokesperson said.
© Thomson Reuters 2016
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