In the Nederlands multiple companies have bocome very big by using this trick. Some companies where doing this for some simple SEO improvements. The first site that used this trick to my knowledge was a website called CoolBlue 4 to 5 years ago (a Amazon like that only sells tech) For every category on there site they would claim a new domain name. So they would have ssdstore.nl monotorcenter.nl etc... once this happend many other sites followed. but this time the evil route.

A dutch Uber eats like company called "Thuisbezorged" made there signup price really cheap. like 2% of a restaurants income they made on the site was payed for using the platform. you get a personal website with a menu but after a while they started to push this really hard, buying automated domain names that roughly look like the name. And they started to spend google adsence for you sometimes without your knowing. restaurants now pay 30% of what they earn on the website to the platform and there are special rules that prohibit them from doing special offers to lure people to there own site.

So it sound like this stuff has already bean going on in the past 5 years, atleast here in the Netherlands it has.