Google’s head of search spam, Matt Cutts, posted a video yesterday clearly stating the geo-location or redirecting users based on their location is not spam. Google will not consider a site that uses geo-location techniques as spam.
What Google does consider spam is when you redirect GoogleBot to a web page of content that users cannot see. That is considered spam and a form of cloaking, according to Google’s guidelines. Google expects you treat GoogleBot as a user accessing your web site from the United States.
Here is the video from Matt:
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