In a major legal clash signaling the friction between traditional e-commerce and the rise of Artificial Intelligence (AI) commerce, retail giant Amazon filed a lawsuit against AI search company Perplexity on Tuesday, November 5, 2025. Amazon is demanding that Perplexity immediately cease the use of its AI browser, 'Comet,' and its associated AI agent to automate purchases on the Amazon platform.

The core of Amazon's complaint, filed in a US District Court, centers on allegations of "unlawful intrusion" and violations of its terms of service. Amazon claims Perplexity's AI agent is accessing its shopping platform without authorization, covertly masking its automated activities as human browsing, and undermining the integrity of the customer experience. The retail behemoth strictly prohibits the use of data mining, robots, or similar data extraction tools on its platform, asserting that Perplexity’s use of code to circumvent these restrictions is no less unlawful than a physical break-in.

Amazon's legal action comes after it reportedly sent a cease-and-desist letter to Perplexity the day prior, demanding a halt to the AI agent's shopping functionality. An Amazon spokesperson emphasized that third-party applications automating purchases must operate transparently and respect a platform's boundaries, noting that the Comet agent had "significantly degraded the shopping and customer service experience."

Perplexity, an AI startup whose investors include Amazon founder Jeff Bezos and which utilizes Amazon Web Services (AWS) for its cloud infrastructure, swiftly rejected the accusations. The company framed Amazon's suit as a clear attempt by a dominant corporation to stifle innovation and restrict consumer choice.

In a public counter-statement titled "Bullying Is Not Innovation," Perplexity asserted that AI agents are merely "tools" and an "extension of users," arguing that no entity can legitimately block a user's right to employ such an assistant. The startup defended its AI agent's actions as fully authorized and directed by the user, not amounting to data scraping or illegal activity. Furthermore, Perplexity accused Amazon of trying to "eliminate user rights" to protect its multi-billion-dollar advertising and sponsored search revenue, which could be jeopardized by consumers bypassing the traditional search and ad-heavy e-commerce interface.

This high-profile dispute underscores the inevitable collision points in the transition from conventional e-commerce to a future dominated by AI commerce. Companies like OpenAI have already introduced 'instant payment' features within platforms like ChatGPT, allowing users to search for and immediately purchase products without ever navigating to a traditional shopping site.

The rise of AI agents—autonomous digital assistants capable of executing complex tasks like shopping—threatens to drastically cut the web traffic and advertisement revenue of established e-commerce giants. When an AI agent performs a transaction on behalf of a user, the need for the user to view ads or browse the curated shopping environment disappears.

While Amazon is taking a strong stance against unauthorized external AI agents, the company is simultaneously investing heavily in its own in-house solutions. Amazon has launched its own AI-powered tools, including the shopping agent 'Buy for Me' and the AI assistant 'Rufus,' which manages carts and provides product recommendations.

The outcome of the Amazon vs. Perplexity lawsuit is poised to be a landmark ruling. It will likely set a crucial legal precedent regarding the rights of AI agents in commercial ecosystems, defining the boundaries between protecting platform integrity and fostering technological innovation in the age of agentic AI.