Amazon loses its appeal against Perplexity's AI agent

Amazon Loses Appeal Against Perplexity's AI Agent

A U.S. appeals court has overturned an injunction that blocked the startup Perplexity from using its AI shopping agents on Amazon. The court ruled that it is the users themselves who access Amazon through the agents, not the AI company. Therefore, a violation of federal computer fraud law is unlikely.

Amazon had sued Perplexity because its AI agents log into customer accounts and place orders. This is the first decision from a U.S. federal appeals court regarding the legality of AI agents, but the underlying case remains unresolved.

The 9th U.S. Circuit Court of Appeals in San Francisco lifted the injunction against Perplexity. The reason: users access Amazon, not the AI company. According to Reuters, the court found that Amazon had little chance of succeeding in its claim that Perplexity's AI agents violated federal computer fraud law.

The decisive factor was a question of attribution. The law prohibits accessing computers and obtaining information without authorization. However, the appeals court concluded that it is the users who access the Amazon platform via the agents, not Perplexity itself. The court supported the startup's argument on this matter.

This is the first decision from a U.S. federal appeals court on whether AI agents can legally access online platforms on behalf of users. The answer is crucial for an entire field. Agent systems plan, reason, and execute tasks with limited human oversight. They navigate, shop, and conduct transactions on the web.

Amazon does not intend to accept this loss. "We disagree with today's decision regarding the preliminary injunction," said a spokesperson, adding that the company remains confident and is evaluating its options. "We remain confident in our case and are assessing our next steps." Perplexity's spokesperson, Jesse Dwyer, stated: "Perplexity will continue to fight for the right of internet users to choose the AI they wish."

From November Lawsuit to Appeal Reversal

Amazon sued Perplexity in November, accusing the startup of secretly accessing Amazon customers' private accounts through its Comet browser and integrated AI agent. This agent can log into shopping accounts and place orders on behalf of users. Amazon's complaint alleged security risks and claimed that Perplexity had ignored repeated requests to cease its activities. The startup called the lawsuit baseless and a "brazen attempt" to keep Amazon customers away from Comet, as AI agents "have no eyes to see the pervasive advertising that Amazon imposes on its users."

In March, a federal court in California temporarily barred Perplexity from using the agentic AI on Amazon. Judge Maxine Chesney found "strong evidence" that Perplexity had accessed password-protected accounts with user consent but without Amazon's authorization. The startup was also ordered to delete copies of Amazon's data. This injunction has now been lifted, but the underlying case has not been resolved.

Amazon argued that third-party AIs must operate transparently and adhere to established APIs, referencing its own tools like "Buy For Me" and the assistant "Rufus." Perplexity's CEO, Aravind Srinivas, called this "harassment" and argued that agents acting on behalf of users should have the same rights as human users. The business ties between the two companies add another layer to the dispute. Perplexity is an AWS client with commitments worth hundreds of millions of dollars, and Jeff Bezos is among the investors in the startup.