First Google announced its Wallet service, which would put it in competition with PayPal (note: Paypal is part of eBay). Now it looks like they have set their sights directly on eBay. Google is working on a new service is called "Google Base".
Here are screen shots of the service. In order to access this service it looks like you have to be invited. There is really not too much information available about the service right now, so it looks like we will have to wait and see.