E-Commerce Showdown: Amazon Sues Startup Perplexity Over AI Shopping Agent Access

Amazon has launched a federal lawsuit against Perplexity AI, seeking to block the startup’s artificial intelligence assistant from completing purchases on its online marketplace. The case marks one of the earliest legal tests of how far autonomous AI systems can go in handling real-world commercial transactions.

Filed in a San Francisco federal court, the complaint asks that Perplexity stop using its AI browser tool—known as Comet—to carry out shopping activities on behalf of users. Amazon contends that Perplexity’s technology violates its terms of service and constitutes computer fraud because the AI agent does not clearly disclose when it is making a purchase on the platform.

The action follows an earlier cease-and-desist notice that Amazon reportedly sent to the smaller company, warning that the agent was degrading the customer experience and creating potential security risks. Legal experts suggest that the outcome of this dispute could set an important precedent for how AI agents interact with digital marketplaces and whether they can perform tasks that have traditionally required human users.

Amazon’s acceptable-use policies explicitly ban the use of automated tools for data extraction or large-scale access to the site, a rule that appears central to its argument.

Perplexity, a rapidly expanding AI startup recently valued near $20 billion, had previously paused the operation of its shopping agents after discussions with Amazon in late 2024. According to the lawsuit, the company later resumed activity, with Comet allegedly logging into Amazon through user accounts while disguising its identity as a standard web browser. Amazon says that after attempts to block the software, Perplexity updated the agent to bypass those restrictions.

An Amazon representative stated that third-party apps handling purchases should operate transparently and respect a retailer’s decisions about participation. Perplexity responded publicly that the litigation demonstrates Amazon’s effort to stifle competition, arguing in a company blog that consumers should have the right to select whichever AI assistant they prefer when shopping online.

Chief Executive Aravind Srinivas defended Perplexity’s approach, suggesting that digital agents acting on a user’s behalf should be treated no differently from the users themselves. He added that while Amazon has long inspired his company, forcing customers to rely solely on Amazon’s own tools contradicts its customer-centric reputation.

Analysts note that the disagreement also carries financial implications. If automated systems begin managing purchases directly, the value of Amazon’s advertising business—built largely on sponsored product listings—could decline sharply.

During a recent earnings call, Amazon CEO Andy Jassy acknowledged that existing AI shopping tools often deliver inconsistent results, citing weak personalization and inaccurate pricing. Nonetheless, he confirmed that Amazon is in dialogue with several third-party developers about possible collaborations in this area.

Despite the tension, Perplexity remains a major client of Amazon Web Services, having committed hundreds of millions of dollars in cloud-computing contracts. Amazon founder Jeff Bezos is also among Perplexity’s investors. As of the latest trading session in New York, Amazon’s share price had slipped by roughly one percent.