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The EU yesterday launched a new type of domain names: domains with "foreign" characters (clearly the term applies only to those in countries with languages that do not use these characters), the likes of é è à ü etc...
Unfortunately the domains are not recognized "as is", but in stead are redirected to another domain like xn--thedomainnamewithoutthespecialcharacters-somemorerandomstuff.eu
Having ordered a domain already, i was rather disappointed finding this out.
The real question here is: how will this affect a website's ranking in google results? Will google index these pages with the foreign characters or will they be indexed with the xn--notation?
What about eu domains all together? I have found some old forum posts but none that could shed a light on the importance of them in google.
[edited by: Robert_Charlton at 5:43 pm (utc) on Dec. 11, 2009]
The domain name itself does not directly affect ranking, as far as I know at least. But an IDN certainly might make it more challenging to get accurate backlinks.