Amazon and Perplexity Clash Over AI Agent 'Comet' Accused of Rule Violations, Case Reaches Court

Amazon Perplexity AI Cease-and-Desist: Artificial intelligence is rapidly advancing in the world of technology, but this development has now sparked a major controversy. E-commerce giant Amazon and AI startup Perplexity have found themselves at loggerheads. The issue revolves around Perplexity's new browser extension, Comet, which can make online purchases on behalf of users. Amazon claims this feature violates its website's terms and poses a threat to customer privacy. Consequently, Amazon has sent Perplexity an immediate notice ordering it to cease this feature.

Amazon's Allegation: Shopping Agent Violating Rules

Amazon has filed a lawsuit against Perplexity AI in a US federal court, levelling serious accusations. According to the company, Perplexity's AI agent, 'Comet', was logging into users' Amazon accounts and making purchases on their behalf without disclosing that the action was being performed by an automated bot rather than a human.

Amazon asserts that such actions constitute a direct violation of the Computer Fraud and Abuse Act and the website's terms of service. In its petition, the company stated, "Perplexity should exhibit the same transparency expected of a real user. Infiltrating a website via a bot, whether through technical code or physical means, is illegal."

Amazon had previously sent Perplexity a cease-and-desist notice demanding the discontinuation of this feature. However, when the startup failed to comply, Amazon resorted to legal action.

Perplexity's Response: Amazon is Exerting Pressure

Perplexity AI has refuted Amazon's allegations, stating that Amazon is pressuring smaller companies to comply with its demands.

In a blog post, Perplexity wrote, "We aim to make people's lives easier. If a user wishes for their AI assistant to shop online on their behalf, they should have the freedom to do so."

Perplexity's CEO, Aravind Srinivas, also criticised Amazon, stating, "If Amazon forces people to use only its own assistant, it is not right for customers."

What Does Perplexity's New Comet Do?

Perplexity's Comet browser extension acts on behalf of the user for online tasks such as finding products, comparing prices, and placing orders. This means users do not need to open the website themselves; Comet handles all the work for them.

Amazon argues that such bots bypass its website's security systems and disrupt the shopping experience.

Clash Between Companies Over Increasing Use of AI Assistants

This dispute is not limited to Amazon and Perplexity; it marks the beginning of a broader debate about the boundaries of online activities for AI agents. Can an agent browse and shop on a website like a human? Or must it adhere to the platform's rules?

Amazon is currently working on its own AI shopping assistants, 'Buy For Me' and 'Rufus'. However, the company does not want external agents to be independently active on its platform.