I think that Google could reasonably argue that two-click access is sufficient, considering that the “About” page could constitute the first significant page after entering the site. And if they’re going off the part that says it must be displayed where a “reasonable person would notice it”, one could argue that a reasonable person would go to their “About” page to find it.
According to the fourteen consumer groups who made the request to Google in a letter on Tuesday, if Google does not comply they will review their options, including legal action.
Personally I don’t think it is a big deal. I don’t read the privacy policies on most sites I go to, and I suspect that the majority of people do not as well. So I could care less if it takes me one or two clicks to find it. But then on the other hand, I also don’t see why Google is so opposed to making the change. It’s not that big of a deal, but maybe it’s the fact that they just don’t want to be told what to do.. because if you give in easily to one, then many more will come around with their requests as well.