Google's CEO- Larry Page and David Drummond the Chief Legal Officer at Google came out with their official statement regarding the latest requests by the United States Government and the rumors of PRISM.
The rumor is that Google gave the U.S. Government access to their servers through a secret program run by the National Security Agency called PRISM. 
Google's official position is that they have NOT joined any secret program and have not joined any government program of any country that would give those governments secret access to their servers. Google is not giving anyone information about their users' internet activity.
Google is very adamant about making sure that EACH and EVERY request by any government fulfills the law in which that request is based. Google has a full legal team that reviews every single request by any government that requires them to turn over information. If the request does not fall within the law- it is not granted.
Verizon received an order to turn over millions of user records and data by the U.S. government. This of course, creates a lot of other press articles about other companies, Google included.
Google stands by their position that there needs to be transparency in any requests made for their users' internet activity or records of any kind. That is why they have their Transparency Report page. Google is the first company to create such a page.
You can see by this chart that there is a continuous increase of requests for information about our internet activity which is very worrisome as to the errosion of personal liberties and the danger of subverting the freedom of expression.
“But the level of secrecy around the current legal procedures undermines the freedoms we all cherish.” Larry Page