It doesn't install any spyware but the search engine is spyware itself, Google tracks everything you search and they also have trackers on 95% of websites so that they can see who visits what website. And don't even get me started on Google Chrome.
I really like Google. i have been using it my whole life and its served me pretty well. I HAVE, however, heard people saying that Google has the ability to track what you search so they could actually find you. Now, I think the keyword is, they CAN track what you search, does not mean they DO track it. Plus, if Google has that ability, what makes some of you think OTHER search providers can't do that? Yahoo, Bing, MSN, all those search providers all have the ability to basically spy on you by looking at a log of what you search.
Currently the best known browser but goes overkill on ads even those kids should not see.
edit: danya101 google is far from child friendly one time when I googled "sonic" on strict there was an image on sonic fucking tails up the butt. and currently if you google "sonic" on strict the 3rd page theres an image of him having sex with princess peach.