Google rank my website lower than those promoted by gateway companies. Why do they still get away with this?

My competitors pay gateway companies to promote them and manage their websites. As a result the UK market is flooded with these agencies that have effectively ruined the internet as was. To get a top ranking locally [and I mean local] I must pay over 拢1000 a year to each of three agencies. It does not take a rocket scientist to realise that I would have to overcharge customers to get my investment back. Certain companies may be willing but not this one.
I was under the impression that such actions where not entirely within the spirit of the internet, that Goodle punished it, and that in some part it was unlawful.
Hope i have stayed within the rules here by not pointing at any company directly.

I'm not aware of any law making it illegal to pay a search engine for preferential placement. It's one way for a search engine to make money, and that's how Google and others can give away so much free stuff.