This is incorrect. You certainly can buy competitor trademarks as keywords. You are only restricted from using them in ad copy.

Source: https://support.google.com/adwordspolicy/answer/6118?hl=en

Can bid on keywords, you just can't use trademarked terms in ad copy.

Google loves branded Kws on Adwords. Bidding on competitors will have a low quality score, but drives up the competition for the brand owner. With all of the above the fold distractions, you basically have to pay if you want to be above the fold.