The Other Location Shoe Drops: Facebook Deals. Will It Discount Rivals?

Facebook is launching "Deals," a combination location-plus-promotion" feature that offers value to end users who use their mobile devices to "check in" at participating retailer locations, and can get discounts or other offers when doing so.

But here's the interesting angle: so far, Facebook is not charging retailers for the privilege of creating offers and sponsoring them on U.S. Facebook pages.

To start, Facebook has announced deals with 22 partners, while 20,000 small and medium sized businesses on Facebook also have access to the "Deal" creation tool.

Gap is giving away 10,000 free pairs of blue jeans. And when they run out of those, they’re giving 40 percent off of any product when someone checks-in to any of their nationwide stores.

A smaller cinema chain, Alamo Draft House, is giving away a free pint glass when you check-in. And they’ll have offers for special events for friends.

Deal is not a full-on "Groupon" app, but it could lead in that direction. And though there is no certainty about whether "Deal" becomes a for-fee service, Facebook could be disruptive if it decides not to charge partners, as a way of getting more traction. As always, it is difficult to compete with a firm that gives away the product you are trying to sell.

The Other Location Shoe Drops: Facebook Deals