Google CPC is $1.50 even though there is no competition

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We have a keyword like this +term1 +term2 +term3. There is no competition AT ALL for this keyword. Google is charging us $1.50 per click. On the phone the Google rep said that the system uses a default price. How do they continue to call these auctions? Is this grounds for a complaint before the European Commission and/or the European Court of Justice and/or various Attorneys General in the US? The complaints could explain how this is biased towards smaller companies since they are more likely to be in niches and hence use keywords with little competition and hence more likely to be subject to excessive price gouging outside of anything that is recognisable as an "auction".
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