What can I do if a competitor is spamming?

Matt's answer:
CUTTS: All right, Laura Thieme from Columbus, Ohio says, she knows of a client with a competitor who has created 100 or so blog sites with little depth. Google gives them a top ranking on every related term to their industry. Why does this tactic still win? I thought this was crap hat tactics? That crap hat is a phrase Danny Sullivan used at a recent conference where he’s just annoyed when people do like spammy, junky stuff that doesn’t really help anybody on the Web. So, Laura, do a spam report and give us some specifics because, man, I’d love to check it out. You know, I think that our scoring does pretty well on finding out links that we shouldn’t be crediting, but we love to get new data on things that we should be doing better or link exchanges that we don’t appear to be, you know, diffusing if they’re really, really excessive. So, you know, send us in a report so that we can check it out because that’s the sort of stuff we’d love to get, and then we’ll see where goes from there. Thanks.
by Matt Cutts - Google's Head of Search Quality Team