Google spokesman Peter Fleischer says he has warned the government that the introduction of the controversial legislation could lead to the company ruling out investing in Sweden.
While telephone taps have long-been permitted in Sweden, under the new plans police in Sweden will be able to place bugging devices in the homes of suspects, and monitor their email with the approval of a court.
Although Sweden’s four government parties have now reached agreement on the proposals, they have been delayed by opposition parties, government agencies and civil liberty groups.
Opposition parties are expected to postpone a parliamentary ruling until next year, which would mean the bill would come into law in 2009 at the earliest.