is it possible to sabotage a competitors seo?

ok i was thinking, i read a few seo articles saying automated link building generators can harm your search engine ranking/credibility to google and bing etc and get you blacklisted.

if so what if you put your competitors into one of theses automated link building programmes and spammed the web with there links.

im sure google has already though of this and if so what have they put in place to realise if people are up to such antics.

and if they dont have a way to detect if someone is deliberately trying to hurt another websites seo whats stopping people from trying to sabotage other peoples rankings by putting them on link farms, sites with duplicate content, banned sites, illegal sites, unrelated sites, adding like 100,000 links in the space of an hour etc

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