Why doesn't Google setup an auction site and integrate it with Google Checkout + Searches

[norm]

Seems like the only company with a big enough presence to challenge the Ebay/PayPal monopoly would be Google.

If they were to integrate their auction site with searches, like they do with adverts currently, they would instantly attract loads of attention.

 

[norm]

It would be great to give Ebay some competition, they overcharge I think.

Exactly, and they aren't exactly forthcoming about the fees they do charge when you setup a listing.

End of auction fee + Paypal charge can often amount to 15% of the sale price, which is frankly ridiculous.