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Ostensibly to save you time typing in your search query on mobile devices, the search suggestions are now based on your phone's current or last known location. Ideally this will improve the relevancy of those suggested results by optimizing them based on where you are.
In order to take advantage of the new feature, you'll have to turn on "Save recent locations" and "Allow use of device location" under the Settings link on the google.com home page. You may also have to refresh the google.com page on your phone's browser in order to see the location-optimized suggestions.