I am in Germany and we have many special letters like äßö. Wikipedia uses the letters as is in the URL, but I have heard that only US-ASCII characters should be used.

Are there any actual facts on this, or answers direct from Google? Or it really doesn't matter, just being a matter of visual preference as stated here?

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I don't think it affects the SEO but I think it's matter of User Experience. Here's what Google Says about this: https://webmasters.googleblog.com/2010/03/working-with-multilingual-websites.html

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