One of our competitors decided to start attacking us using Google and Bing ads.

So if you search for our company name (company or company.com) it will show their ad saying that our main product has many issues and linking to their site where they criticize us and try to sell their own product.

Most of the ads are very aggressive in tone, which I didn't think Google/Bing would even allow (Company X product is flawed or Company X product won't do what it promised, Company X is lying and similar things).

Have anyone dealt with such a situation? What can we do? They are a smaller company and trying to use our name to gain attention..

Any help or suggestion is appreciated.