Perplexity AI Accuses Amazon of Bullying Over Comet Legal Threat

Perplexity AI, the buzzy AI search engine startup, is accusing Amazon of “bullying” after receiving a cease-and-desist letter demanding it prevent users from making purchases on Amazon through Perplexity’s AI browser, Comet. The dispute highlights the growing tension between tech giants and emerging AI companies as the latter seek to integrate their services into existing platforms.

In a blog post titled “Bullying is not Innovation,” Perplexity argues that its Comet Assistant enhances the shopping experience by allowing users to find items and make purchases directly on Amazon. “They’re more interested in serving you ads, sponsored results, and influencing your purchasing decisions with upsells and confusing offers,” the company stated, implying Amazon’s concerns are rooted in protecting its advertising revenue streams and control over the customer journey.

Amazon’s letter, dated October 31st, alleges that Perplexity is committing computer fraud by failing to disclose when its AI agents are acting on behalf of users. The company asserts that Perplexity lacks authorization to access its store, user accounts, or account details through “disguised or obscured Comet AI agents.”

“As should already be clear given Amazon’s prior efforts and communications with Perplexity, Perplexity does not have authorization to access Amazon’s store, Amazon user accounts, or account details, using its disguised or obscured Comet AI agents,” according to a copy of the letter viewed by CNBC.

Amazon has been actively working to restrict external AI agents from crawling its website, including those affiliated with OpenAI, Google, and Meta. This move reflects a broader strategy by Amazon to maintain tight control over user data and the shopping experience, and it also to defend against potential security vulnerabilities introduced by external AI access.

Amazon countered in a blog post that third-party shopping agents should operate transparently and with the explicit consent of service providers. The company contends that Perplexity’s actions are not transparent and circumvent its safeguards to gain unauthorized access. Amazon further claims that Perplexity’s agents degrade the shopping experience by failing to offer personalized recommendations, broaden product discovery effectively, or optimize for delivery speed.

Amazon draws a comparison to established practices in sectors like food delivery, delivery services, and online travel agencies, where third-party applications operate with the consent of service providers.

“Agentic third-party applications such as Perplexity’s Comet have the same obligations, and we’ve repeatedly requested that Perplexity remove Amazon from the Comet experience, particularly in light of the significantly degraded shopping and customer service experience it provides,” the company wrote.

Interestingly, Amazon is simultaneously developing its own AI-powered shopping tools. Last February, it introduced Rufus, an AI shopping assistant, and in April, it began testing “Buy For Me”, an agent enabling users to purchase products from other websites within the Amazon app. These internal efforts suggest a calculated approach by Amazon, aiming to leverage AI while mitigating perceived risks from external integrations.

During the company’s recent earnings call, Amazon CEO Andy Jassy suggested that partnerships with third-party AI agents were possible. “We have to find a way, though, that makes the customer experience good,” he said, hinting at the need for a framework that aligns with Amazon’s standards for user experience and data privacy.

Perplexity, known for its AI-driven search engine, providing concise answers with links to original sources, launched Comet in July and made it freely available globally in October. Comet is designed to act as a personal assistant, facilitating web searches, tab management, shopping, email drafting, and various other tasks.

This clash underscores a fundamental tension in the evolving AI landscape: Can AI assistants seamlessly integrate into existing platforms without compromising user experience, data security, or the original platform’s business model? The outcome of this dispute between Amazon and Perplexity could set significant precedents for the future of AI integration in e-commerce and other sectors. Furthermore, it highlights the competitive dynamics at play, with large tech firms like Amazon seeking to defend their market position against innovative startups like Perplexity, even as they explore their own AI initiatives.