A federal appeals court overturned an order blocking Perplexity's AI shopping tools on Amazon on Tuesday, delivering an early victory for the startup in a case examining how autonomous AI agents interact with online platforms. The Ninth Circuit Court of Appeals ruled that Amazon is unlikely to succeed on its claim that Perplexity violated the Computer Fraud and Abuse Act, a federal anti-hacking law. The court determined that Amazon's users, not Perplexity, accessed the platform through the AI agent Comet, which browses websites, logs into accounts, and makes purchases on a user's behalf. The ruling offers an indication of how courts may approach AI agents acting on behalf of users, though the underlying lawsuit remains ongoing.
Ninth Circuit Finds Users Accessed Amazon Through AI Agent
The Ninth Circuit Court of Appeals ruled Tuesday that Amazon is unlikely to succeed on its Computer Fraud and Abuse Act claim against Perplexity. The court's decision centered on the question of who accessed Amazon's systems.
"To succeed on a claim under the CFAA, a plaintiff must show that the defendant intentionally accessed a computer, without authorization or exceeding authorized access, thereby obtained information from any protected computer, and that there was loss to one or more persons during any one-year period aggregating at least $5,000 in value," the ruling stated.
The court found that Amazon's users, not Perplexity, accessed the platform through Perplexity's agentic AI browser Comet. Comet can browse websites, log into accounts, and make purchases on a user's behalf.
Dispute Began in November with Cease-and-Desist Letter
The dispute began in November, when Amazon sent Perplexity a cease-and-desist letter before filing suit. Amazon claimed Perplexity's Comet browser disguised automated traffic as a standard web browser, violated its terms of service, and accessed customer accounts without authorization.
Perplexity argued Comet acted only with users' permission using credentials stored on their own devices. The company accused Amazon of trying to block consumer choice in AI assistants.
Federal Judge Granted Preliminary Injunction in March
In March, a federal judge granted Amazon a preliminary injunction. The judge found Amazon had presented strong evidence that Perplexity likely violated federal and California computer fraud laws by accessing password-protected Amazon accounts without Amazon's permission. The order temporarily blocked Comet from shopping on Amazon while the lawsuit proceeded.
The Ninth Circuit's Tuesday ruling overturned this preliminary injunction.
Ruling Offers Indication for Future AI Agent Cases
Although the underlying lawsuit is ongoing, the ruling offers an indication of how courts may approach AI agents that act on behalf of users. The case is closely watched for its implications on how autonomous AI agents can interact with online platforms.
FAQ
What did the Ninth Circuit rule on Tuesday regarding Perplexity and Amazon?
The Ninth Circuit Court of Appeals overturned an order blocking Perplexity's AI shopping tools on Amazon. The court ruled that Amazon is unlikely to succeed on its claim that Perplexity violated the Computer Fraud and Abuse Act, finding that users, not Perplexity, accessed Amazon through the AI agent.
Why did Amazon file a lawsuit against Perplexity in November?
Amazon filed suit after sending a cease-and-desist letter in November. Amazon claimed Perplexity's Comet browser disguised automated traffic as a standard web browser, violated its terms of service, and accessed customer accounts without authorization.
What was the preliminary injunction granted in March?
In March, a federal judge granted Amazon a preliminary injunction that temporarily blocked Perplexity's Comet browser from shopping on Amazon while the lawsuit proceeded. The judge found strong evidence that Perplexity likely violated federal and California computer fraud laws by accessing password-protected Amazon accounts without Amazon's permission. This injunction was overturned by the Ninth Circuit on Tuesday.
