TLDR: Amazon has issued a cease-and-desist letter and filed a federal lawsuit against AI startup Perplexity, demanding it halt its “Comet” AI browser agent from making automated purchases on Amazon’s platform. Amazon alleges computer fraud and terms-of-service violations, claiming Comet degrades the shopping experience and operates deceptively. Perplexity, backed by Jeff Bezos, counters that Amazon is stifling innovation and consumer choice, calling the action a threat to internet users and a move to protect its advertising revenue.
Amazon.com has escalated its dispute with artificial intelligence startup Perplexity AI, sending a cease-and-desist letter and subsequently filing a federal lawsuit. The e-commerce giant demands that Perplexity prevent its “Comet” AI browser agent from conducting automated purchases on Amazon’s platform on behalf of users. This legal action, initiated on November 5, 2025, marks a significant confrontation over the burgeoning role of autonomous AI agents in online commerce.
Amazon’s complaint, filed in federal court, accuses Perplexity of computer fraud and violating its terms of service. The company asserts that Comet operates by disguising its automated activity as that of a human shopper, thereby circumventing Amazon’s policies which explicitly prohibit “data mining, robots, or similar data gathering and extraction tools.” Amazon claims that this deceptive practice “degrades the Amazon shopping experience” and introduces potential privacy risks for customers. According to Amazon, Perplexity’s software actively attempts to avoid detection while interacting with its web store.
This is not the first interaction between the two companies on this matter. Amazon reportedly warned Perplexity in November 2024 to cease using AI agents for purchases until an agreement could be reached, a directive Perplexity initially honored. However, Amazon alleges that by August 2025, Perplexity’s Comet browser agent resumed shopping on users’ behalf, this time masquerading as a Google Chrome browser to bypass detection.
Amazon emphasizes that third-party applications facilitating purchases on its platform should seek explicit permission to ensure a consistent and positive customer experience. The company is also actively developing its own AI-powered shopping assistants, such as “Rufus” and “Buy For Me,” which allow users to complete purchases and browse items within its app.
Perplexity AI, valued at approximately $20 billion and notably backed by Amazon founder Jeff Bezos through his Bezos Expeditions Fund, has vehemently rejected Amazon’s demands. In a public blog post, Perplexity characterized Amazon’s stance as “a threat to all internet users” and accused the retail behemoth of leveraging its market dominance to “bully a smaller competitor.” Perplexity argues that AI agents are distinct from traditional crawlers or scrapers and that users should retain the freedom to choose which AI technologies represent them online. The startup also suggested that Amazon’s true motivation is to protect its advertising revenue and product placements, stating, “Easier shopping means more transactions and happier customers. But Amazon doesn’t care. They’re more interested in serving you ads, sponsored results, and influencing your purchasing decisions with upsells and confusing offers.”
Also Read:
- OpenAI’s Atlas Browser Sidesteps Content from Suing Media Outlets
- OpenAI Warns Google’s Proposed Search Remedies Could Stifle AI Competition
This dispute highlights a critical and evolving debate within the tech industry regarding the operational boundaries of autonomous AI agents. As AI assistants, like Perplexity’s Comet and similar emerging tools from OpenAI and Google, aim to perform complex tasks such as shopping, research, and email autonomously, the legal and ethical frameworks governing their interaction with major online platforms are being tested.
