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Facebook’s recent update to its “Nearby” feature now gives it a competitive edge in the local search world for mobile.

Prior to the update, Nearby was an app that showed you where your friends had checked-in. Now, the app not only shows you that information but also shows you nearby businesses, making it the newest local search tool to add to your mobile tool belt. Results are ranked according to the number of check-ins to the location, the location’s star ratings, likes and recommendations. Your network is the immediate decision maker for which businesses are shown to you. However when no data from your network of friends is available, the larger Facebook network will step in and help determine the rankings for the local businesses that appear on your smartphone screen.

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Users of the Nearby app can search or browse local businesses by name or category. Only users who have actually checked-in to the business at some point in the past will be able to rate it, this seems like a great way to legitimize ratings and reviews.

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Local Businesses – Get a Facebook Page Now!

If you are a local business owner and don’t have a Facebook page yet, now is the time to get one. This is because if you don’t have a Facebook page for your business, you won’t show up in the Nearby app’s local results. If you already have a Facebook presence, now is a great time to update your page. Make sure all of your information is completely filled out and current. Take special care to update your category because people now use categories as a way to browse local businesses on the app and you don’t want to accidentally appear in the wrong one.

Currently, Nearby is only on Facebook for mobile. However, if the app does well, we don’t see why the company wouldn’t make it available for desktop use as well. What do you think about Facebook’s new venture into the local search realm? Have you used Nearby yet? How does it measure up to the local apps we’re used to using on our mobile devices?

According to an article on Mashable, only hours after the Google Maps app for iPhone was released, it became the most popular free app in the Apple App Store. For many iPhone users, this app is long awaited after Apple’s disappointing attempt at a Maps application (see Apple’s apology to its customers regarding Apple Maps).

Check out some screen shots of the new iPhone Google Maps app:

Easily search for local businesses and view their Google local listing. Click to call, save and share the listing, read the reviews and see how far the business is from your current location.

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Choose different routes and view the entire route or use turn-by-turn navigation to get to your destination.

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So far, our first impression of Google Maps is great – it’s easy to use, has a beautiful interface and integrates nicely with Google+ Local, all with the legendary power of Google Maps.

What are your first impressions of the new Google Maps app for iPhone?

According to CBS News, a contractor in Virgina is suing one of his clients for posting negative reviews about his service on Internet review websites, Yelp and Angie’s List.

Jane Perez hired contractor, Christopher Dietz, to do some work on her house in June 2011. She was unhappy with the outcome, posting photos of trash left behind, strands of hair stuck in a refinished floor and beat up door hinges to Yelp and Angie’s List. She also accused Dietz of stealing jewelry from her house. She gave him an “F” rating on Angie’s List and accused him of causing more damage to her home on Yelp writing “bottom line, do not put yourself through this nightmare of a contractor.”

Dietz responded to the negative reviews then issued a $700,000 lawsuit for defamation. He insists that her claims are lies and that he did a “150% professional job in her house.”

On Wednesday, December 5, a judge ordered Perez to remove any allegations of theft and comments about legal action. The court is still deciding on whether there are grounds for a defamation lawsuit.

What do you think? Does this story make you want to think twice about leaving a negative review on Yelp?

Watch the CBS News report here: