The following IRI http://bäcker.com/
- Doesn't work. Page edited with NVU, href attibute contains "b%C3%A4cker"
The following http://bäcker.com/
- Works. Page (re)edited with text editor like emacs or Xcode; href attribute contains "bäcker"
It is worth to note that in the first case Safari ends up with a paradoxal message:
(Safari cannot open the page "http://bäcker.com/" because
the server "b%c3%a4cker.com" is not found.)