On: Google's updated privacy policy states it can use ...

[VirusNewbie]

so if I take a picture of my wife on vacation in germany with someone in the background I'm breaking the law?

[mxscho → VirusNewbie]

Not necessarily, as there are other exceptions to this rule. A person can also be "Beiwerk" [1] (= accessory/props) which in the context of personality rights means that you are not the main focus point of the picture.

[1] https://de.wikipedia.org/wiki/Beiwerk

[nicbou → VirusNewbie]

There are clear exceptions for people who happen to be in the picture.