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Your phone’s location data is one of many factors Facebook uses to find new friends for you

A report from Fusion.net talks about how Facebook is using your smartphone's location data in order to suggest new friends for you.

While Facebook does admit it will use this data, they say location data alone is not used for this feature. They remind you that two people will also have to have other things in common (like overlapping networks) before it will suggest a new friend for you.
 
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