Often Google updates its filters for special domain names that may be reported to have bugs or spam. So if you have the same domain name as the one that has been blacklisted you could end up having no traffic in your site. Some domain names are purchased in bulk for the purpose of sending spam.
In an effort to block this domain name Google wipes out all websites having the same domain name which could affect your site traffic negatively. This is a drastic step taken by Google. However as a safe bet you should opt for the local domain name that is most popular instead of some other lesser known domain name.
Originally posted 2008-08-26 05:14:06.