Perplexity Wins Appeal Against Amazon in AI Shopping Lawsuit

A federal appeals court has overturned an order blocking Perplexity's AI shopping tools on Amazon, marking a significant victory for the startup. The Ninth Circuit Court of Appeals ruled that Amazon is unlikely to succeed in its claim that Perplexity violated the Computer Fraud and Abuse Act. The court stated that to succeed on a CFAA claim, a plaintiff must demonstrate intentional unauthorized access to a computer, resulting in a loss of at least 5000 dollars within a year. The ruling clarified that it was Amazon's users who accessed the platform through Perplexity's AI browser Comet, which can browse websites and make purchases on behalf of users. The dispute began in November when Amazon issued a cease-and-desist letter to Perplexity before filing a lawsuit. Amazon alleged that Comet disguised automated traffic as a standard web browser and accessed customer accounts without authorization. Perplexity countered that Comet operated only with user permission using stored credentials. In March, a federal judge had granted Amazon a preliminary injunction, citing strong evidence of potential violations of federal and California computer fraud laws. This ruling temporarily blocked Comet from shopping on Amazon while the lawsuit continued. Although the lawsuit remains ongoing, the ruling provides insight into how courts may handle AI agents acting on behalf of users.

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