This is definately the way Google operates now. I have noticed with different websites that just because they end in a .co.uk, then the results show much more favourably.

All the major TLD extentions are given priority in Google.com. This does not exclusively guarrantee that the results will only give .co.uk on Google.co.uk, but it definately favours those extentions.

I beleive the same is true for all the regions around the world.

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