Amazon Sues Perplexity Over Comet AI Agentic Browsing and ToS Violations

Amazon Escalates Perplexity Dispute with Formal Lawsuit Over Agentic Browsing

Amazon has formally escalated its dispute with AI search engine startup Perplexity, filing a lawsuit in San Francisco federal court. The action, confirmed on 2025-11-06, accuses Perplexity’s AI-powered shopping assistant, Comet, of computer fraud and breaches of Amazon’s terms of service by disguising itself as a human shopper. This legal move follows Amazon's earlier cease-and-desist letter, which Perplexity had publicly labeled as "bullying."

The core of the disagreement centers on Comet’s agentic browsing capabilities within Amazon’s online store. Amazon had previously warned Perplexity multiple times that Comet violated its terms of service by not identifying itself as an automated agent. Perplexity, in a blog post titled "Bullying is not innovation" on 2025-11-04, contended that its agent, acting directly under a human user's direction, inherently possesses the "same permissions" as the user and therefore doesn’t require separate identification.

The Conflict Over Agent Identification and Terms of Service

Amazon’s counter-argument highlights that numerous other third-party agents operating on behalf of human users, such as food delivery apps or online travel agencies, routinely identify themselves. These entities respect service provider decisions regarding participation on their platforms. Amazon's full response, shared with media outlets, specifies that its Terms of Service Section 4.2 prohibits unauthorized automated access and mandates that agents utilize APIs or identify themselves via headers. This is a point of contention. Amazon implies that if Comet simply identified itself, it could operate, but Perplexity claims Amazon would then block the bot to protect its advertising and product placement revenue. Unlike human shoppers, a bot tasked with a specific purchase, say a laundry basket, isn't susceptible to impulse buys or upselling opportunities.

Amazon also operates its own integrated shopping bot, Rufus, introduced earlier in 2025. This internal AI assistant is designed for product discovery within Amazon's platform, which critics suggest creates a competitive motive for the e-commerce giant to restrict rival agentic tools like Comet.

Broader Implications for Agentic AI and Online Commerce

This lawsuit marks a significant moment for the burgeoning field of agentic AI. The dispute mirrors earlier challenges faced by Perplexity, notably a Cloudflare research report from 2025-07-10. Cloudflare accused Perplexity of scraping websites while actively circumventing bot-blocking measures, sometimes by hiding its identity. That incident sparked debate on whether such AI behavior is akin to human browsing or a violation of website autonomy.

The broader industry trend indicates a growing tension between agentic AI tools and online platforms. Forrester Research, in a report dated 2025-11-03, anticipates a rise in similar lawsuits, predicting that 40% of e-commerce platforms will implement bot restrictions by 2026. This dispute is primarily U.S.-centric, with the lawsuit filed under U.S. laws like the Computer Fraud and Abuse Act. However, experts noted in a 2025-11-05 report from The Verge that agentic tools could face scrutiny in EU markets under GDPR for automated data processing.

In response to the escalating situation, Perplexity announced on 2025-11-06 enhancements for Comet to integrate with non-Amazon sites, including Walmart, effectively positioning these updates as a workaround amid the ongoing legal challenge. This latest lawsuit follows other legal issues for Perplexity, including a lawsuit from Reddit on 2025-10-23 for unauthorized data scraping and a settlement with Dow Jones in October 2025 involving revenue-sharing. The outcome of the Amazon-Perplexity case could establish a significant precedent for how AI agents must interact with online platforms globally.

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Amazon Sues Perplexity Over Comet AI Agentic Browsing and ToS Violations

Key Takeaways

Key Takeaways

Amazon Escalates Perplexity Dispute with Formal Lawsuit Over Agentic Browsing

The Conflict Over Agent Identification and Terms of Service

Broader Implications for Agentic AI and Online Commerce

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Key Takeaways

Amazon Escalates Perplexity Dispute with Formal Lawsuit Over Agentic Browsing

The Conflict Over Agent Identification and Terms of Service

Broader Implications for Agentic AI and Online Commerce

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Similar Posts