I would be upset at both especially if there was no disclosure to me of what was going on. I would be less upset at Google for the reason's Ph8l listed. I know why Google is after this information. I have no idea why the feds would want it.
But let's look at something that neither should have access to. Let's say it was revealed that if you installed Google Toolbar it installed a tracker that Google used to track your financial information when you went to a bank, broker's web site, investment site, etc.... Now Google has business knowing how much money you've got in your bank account. None at all. But suppose it was revealed that the feds were doing the exact same thing and gathering the exact same information. Which privacy breach are you more upset about?