The problem with this is there is a whole industry around what is called 'negative SEO' which has basically defeated the purpose of these reporting tools.
It goes like this. You want to hurt a competitor so you hire an SEO agency to do a bunch of black hat stuff to the competitor's site. Then you report the competitor's site to google in hopes that they penalize them. Now google is put in an awkward position where the site that looks guilty is actually innocent.
For Google, the best place to focus is moving away from penalties for the most part and just trying to devalue spammy tactics. It'll never be perfect, but at least this way you avoid companies attacking each other.