In an interview with German magazine Spiegel, Sabine Leutheusser-Schnarrenberger said the company must clearly inform users of what is happening with their data.
"If this does not occur, then perhaps we will be required to step in as lawmakers," she said.
The minister said applications like Google Street View and Google Earth, which provide satellite images of almost everything from city streets to entire countries, are "absolutely worth exploring," with regard to data protection.
"I am bothered by this kind of rushing forward, this megalomania, which is also apparent in the case of Google Book Search," she said, adding that the US-based internet business was becoming "a monopoly, similar to Microsoft."