It some times makes us feel that.. google is collecting some information...from our system....
But this is what the information.. given in the google site.. regardin this process.....
In a nutshell
GoogleUpdate.exe is a software component that acts as a
meta-installer and auto-updater in many downloadable Google
applications, including Google Chrome. It keeps your programs updated
with the latest features. More importantly, GoogleUpdate allows your
Google applications to be rapidly updated if security flaws are
discovered.
When you choose to install Google Chrome, GoogleUpdate is first
installed if you don't have it already. It's then used to download
Google Chrome and Gears and install them on your computer. GoogleUpdate
also regularly checks Google servers to see if an update is available
for Google Chrome. If one is available, GoogleUpdate silently updates
Google Chrome to the newest version so that you can continue using the
browser without interruption.
A browser plug-in is included as part of GoogleUpdate for Firefox,
Google Chrome, Internet Explorer, among others. This plug-in only works
on Google websites to install software that you've explicitly requested
to be installed. It isn't used during normal browsing and it doesn't
provide any data or read any browser data when performing installations.
Information that's sent to Google
When GoogleUpdate communicates with Google servers, it sends IDs of
GoogleUpdate-managed applications on your computer and general usage
information for these applications. GoogleUpdate also uses its own,
randomly-generated unique ID number to accurately count total users.
This information includes version numbers, languages, operating system,
and other install or update-related details, such as whether or not the
applications have been run. This information is not associated with you
or your Google Account. Additional information may be sent if you
choose to send your usage statistics for Google Chrome.
Removing GoogleUpdate
To fully uninstall GoogleUpdate, please uninstall all Google
applications on your computer. GoogleUpdate will be uninstalled
automatically a few hours after you've uninstalled your Google
programs. GoogleUpdate can't be removed on its own because it's tied to
Google applications on your computer. If you remove the GoogleUpdate
process separately on your computer, you may find that your Google
programs no longer function properly and, in many cases, you may see
GoogleUpdate return automatically.
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