At the Google Zeitgeist conference, Google's CEO Eric Schmidt said that Google will add social features to the existing services, but it won't launch a standalone product to compete with Facebook. "We're trying to take Google's core products and add a social component. If you think about it, it's obvious. With your permission, knowing more about who your friends are, we can provide more tailored recommendations. Search quality can get better. Everybody has convinced themselves that there's some huge project about to get announced next week. And I can assure you that's not the case," said Eric Schmidt, according to MSNBC.
Schmidt also said that "the best thing that would happen is for Facebook to open up its data. Failing that, there're other ways to get that information." Wall Street Journal speculates that YouTube is one of the services that'll add more social features. For example, you'll be able to see when a video is watched by many of your friends.