Amazon vs. Perplexity: Legal Battle Over AI Browsing

Amazon and Perplexity Clash Over AI Shopping Assistant

Both Amazon and Perplexity have publicly confirmed that Amazon has requested Perplexity to remove its agentic browser from its online store. The e-commerce giant issued a cease-and-desist letter to the AI search engine startup, following repeated warnings regarding its AI-powered shopping assistant, Comet, and its failure to disclose its agent status.

Perplexity detailed the situation in a blog post, asserting that Amazon’s actions represent a threat to all internet users and mark the first legal challenge from Amazon against an AI company. The post, titled “Bullying is not innovation,” outlines the core of the dispute.

Perplexity’s Stance on Agent Identification

Perplexity contends that because its agent operates under the direction of a human user, it should possess the same permissions as that user. This reasoning suggests that explicit identification as an agent is unnecessary.

However, Amazon counters this argument by highlighting that other third-party agents do identify themselves when acting on behalf of users. The company provides examples such as food delivery applications and travel agencies, which clearly indicate their role in the transaction.

Amazon’s Position and Potential Solutions

According to Amazon, Perplexity could resolve the issue by simply identifying its agent. This would allow Amazon to determine whether to permit access. The possibility remains, however, that Amazon might block Comet – or any similar third-party agent – from its platform.

Amazon’s statement emphasizes the importance of transparency, stating that applications making purchases on behalf of customers should operate openly and respect the decisions of service providers regarding participation.

Concerns About Advertising and Product Placement

Perplexity suggests that Amazon’s motivation stems from a desire to protect its advertising revenue and product placement strategies. The company posits that an AI bot focused solely on acquiring a specific item, like a laundry basket, would be less susceptible to impulse purchases or promotional offers.

Previous Scrutiny of Perplexity’s Web Access Methods

This situation echoes concerns raised a few months prior by Cloudflare, which accused Perplexity of scraping websites while disregarding bot-blocking requests. While some defended Perplexity, arguing that its actions mirrored those of human web browsers, Cloudflare documented instances where the AI concealed its identity despite website opt-outs.

The Cloudflare incident, as reported by TechCrunch, foreshadowed the potential challenges that could arise with the widespread adoption of agentic technology. Questions remain about how websites will manage and interact with bots handling shopping, travel, and reservations.

Setting a Precedent in E-commerce

Perplexity believes Amazon is establishing a crucial precedent. As a dominant force in e-commerce, Amazon is asserting that agents should identify themselves, allowing websites to control access and determine appropriate interaction policies.

Update: Amazon has since released its complete cease and desist letter, further detailing its concerns and demands.

Here's a summary of the key points:

• Amazon requested Perplexity to remove its agentic browser.
• The dispute centers on whether Perplexity’s AI assistant, Comet, should identify itself as an agent.
• Amazon argues that transparency is crucial for third-party applications making purchases on behalf of customers.
• Perplexity suggests Amazon’s concerns are related to advertising revenue.

Comet, the AI shopping assistant, is at the heart of this conflict.

The situation highlights the emerging complexities of AI integration within existing online ecosystems.