Amazon sends legal threats to Perplexity over agentic browsing

Amazon has officially demanded that Perplexity remove its AI-powered shopping assistant, Comet, from its platform, a move both companies confirmed on Tuesday. The ecommerce giant previously warned Perplexity multiple times about the alleged violation of its terms of service, arguing that Comet failed to disclose its identity as an agent. This culminated in a cease-and-desist letter that Perplexity described in a blog post titled "Bullying is not innovation." In the blog, Perplexity expressed its concerns over what it termed an aggressive legal threat from Amazon, which insisted that Comet users be barred from utilizing their AI assistants on its site. This marks Amazon's first legal confrontation with an AI company and raises broader questions about user rights in the digital marketplace. Perplexity contends that its agent acts under the user's direction, thus possessing the same permissions as the user, and believes it should not be required to identify itself as an agent. Amazon countered by highlighting that other third-party agents, like food delivery apps, typically disclose their identities when acting on behalf of users. The tech giant's statement emphasized that third-party applications making purchases on behalf of customers should operate transparently and adhere to the service provider's guidelines. The implications of this dispute extend beyond Perplexity and Amazon. The ecommerce leader hinted that by failing to identify itself, Comet could be blocked from accessing Amazon, especially since Amazon also offers its own shopping bot, Rufus. Furthermore, Perplexity alleged that Amazon's motivations might extend to protecting its advertising and product placement revenues. Unlike human shoppers, bots may not be susceptible to upselling, which could influence their purchasing behavior. The situation draws parallels to previous controversies involving Perplexity, where it faced accusations from Cloudflare regarding scraping websites while ignoring requests to block AI bots. Although some defended Perplexity at that time, the discussion around how AI interacts with the web remains contentious. As the landscape of automated shopping and bookings evolves, companies like Amazon are setting critical precedents regarding the operation of agentic technology. With Amazon positioning itself as a dominant player in ecommerce, it underscores the expectation that AI agents disclose their identities while navigating online platforms. This ongoing legal battle could have significant implications for the future of AI shopping assistants and their integration within established digital ecosystems.