Facebook added a new location tracking feature dubbed Places to its social networking service late on Wednesday. The service lets users tag their current location and see who’s nearby, much like other location-based social network services such as Gowalla and Foursquare.

In addition to tagging their current location, Places users can also tag friends that are with them even if those friends don’t use the Places feature, add comments to tagged locations, see which Facebook friends are in the same area, and find new businesses or services in their area based on other user’s Places tags.

As always, privacy is a big concern for many Facebook users, so the feature includes some opt-out options, too. Friends can untag themselves if they’ve been tagged in a Places location, users can opt out of showing location tags to the general public, and users can report tag location abuse.

Facebook also updated its self-named iPhone app to include Places support. The update also added the ability to upload photos and video in the background on iOS 4, lets users set privacy levels for individual posts, and fixed sevearl bugs.

Facebook 3.2 is free and available for download at Apple’s iTunes-based App Store.