This is how the popular car auction site bringatrailer.com bidding process works for cars sold on their site too, a quirk of which is that it makes watching the end of the auctions live online kinda fun, especially given the discussions that break out in comment section on each car up for sale while folks nervously watch the current candidate for the final bid cool down.

Much like your example, in the two minutes before the end of the auction, every new bid placed extends the auction clock by another two minutes, the winner hasn't won the auction until two minutes have passed with no further counter bids.

> https://bringatrailer.com/how-bat-works/