Amazon has issued a legal directive to Perplexity, demanding the removal of its AI-powered shopping assistant, Comet, from Amazon’s online store. Both companies have publicly confirmed this dispute, which escalated after Amazon reportedly warned Perplexity multiple times about Comet violating its terms of service by failing to identify itself as an agent. The e-commerce giant subsequently sent a cease-and-desist letter, prompting Perplexity to publish a blog post titled “Bullying is not innovation,” describing Amazon’s actions as an “aggressive legal threat” and a danger to all internet users.

Perplexity’s core argument centers on the premise that an AI agent acting under the direction of a human user automatically inherits the same permissions as that user, negating the need for the agent to explicitly identify itself. This stance reflects a fundamental debate over how AI agents should be regulated in online interactions.

Conversely, Amazon emphasizes industry standards, noting that other third-party agents acting on behalf of human users routinely identify themselves. Amazon provided examples such as food delivery apps and their partner restaurants, or online travel agencies booking flights for customers, illustrating that disclosure is common practice. Amazon suggests Perplexity could comply simply by identifying its agent to continue operating.

Perplexity contends that Amazon’s true motivation behind blocking Comet, or any AI shopper, is to protect its advertising and product placement revenues. AI bots tasked with specific purchases, like a laundry basket, aren’t susceptible to upsells, impulse buys, or promotions, potentially disrupting Amazon’s business model that depends on customer browsing and discovery. Amazon itself operates its own shopping bot, Rufus, complicating the competitive landscape.

This dispute echoes a similar controversy when Cloudflare accused Perplexity of scraping websites despite opt-out requests. Many defended Perplexity, arguing its AI accessing public sites on user request mirrors human browsing. However, concerns arose over Perplexity using methods like identity masking to access sites that had opted out, highlighting challenges in defining protocols for agentic AI in shopping, travel, and reservations.

Amazon, as a dominant force in e-commerce, is setting a precedent by stating AI agents must identify themselves and allow websites to decide on participation. This establishes a critical benchmark for the evolving interaction between AI agents and online platforms in the digital ecosystem.