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Hmm, I heard it too actually.
Usually web sites on multiple domains targets different countries, then I think Google diverts traffic according to closest keyword match and user location.
If you have multiple domains and exactly the same content, then Google will be confused which one they should treat as primary.
You can have multiple domains and yes, they must have different content.
The best practice is to target domains by country or region.
How is your web site doing? Is it back in Google?
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