In a escalating feud that underscores the tensions between e-commerce giants and AI innovators, Amazon.com Inc. has issued a cease-and-desist letter to Perplexity AI Inc., demanding the startup halt its AI browser agent, Comet, from making purchases on behalf of users on Amazon’s platform. The move, reported on November 4, 2025, highlights growing concerns over autonomous AI agents interacting with online marketplaces.

According to Bloomberg, Amazon accuses Perplexity of committing computer fraud by failing to disclose when its AI agent is shopping on a user’s behalf, violating Amazon’s terms of service. Perplexity, in response, has labeled the action as bullying, arguing that Amazon is attempting to restrict user rights to protect its advertising revenue.

The Rise of AI Agents in E-Commerce

Perplexity AI, founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski, has rapidly grown into a $14 billion valuation company by June 2025, backed by investors including Jeff Bezos. The startup’s Comet browser represents a new wave of agentic AI tools designed to autonomously browse and complete tasks like shopping, as detailed in The Information.

This technology aims to reinvent web browsing by making it more autonomous, but it has sparked debates on regulation. Reuters notes that the clash exemplifies emerging discussions on how AI agents should interact with websites, especially in sensitive areas like e-commerce.

Amazon’s Stance and Accusations

Amazon, which is itself developing AI shopping agents and engaging with third-party builders, claims Perplexity’s Comet violates its policies by not identifying itself as an AI during transactions. Posts on X, formerly Twitter, reflect public sentiment, with users highlighting Amazon’s demand to block such agents entirely from browsing its site.

In its letter, Amazon reportedly demands Perplexity prevent users from using Comet to browse and purchase on Amazon, citing fraud risks. CNBC reports Perplexity’s accusation that Amazon is bullying to eliminate competition from third-party AI shoppers.

Perplexity’s Controversial History

Perplexity has faced prior scrutiny for its data practices. A 2024 Wikipedia entry and investigations by Wired revealed allegations of using undisclosed web crawlers to scrape content from news sites, ignoring robots.txt protocols. Cloudflare’s analysis in August 2025 accused Perplexity of modifying user agents and IPs to evade detection.

X posts from users like Brian Merchant in 2024 echoed these concerns, noting Perplexity’s hidden scraping methods. Oli Franklin-Wallis shared a Wired investigation showing intentional ripping off of copyrighted work, funded by high-profile backers.

Industry Implications and Responses

The dispute arrives amid broader AI agent developments. Sherwood News points out the irony: Amazon is building its own AI agents while restricting others. Perplexity argues this stifles innovation and user autonomy in online shopping.

Recent X discussions, including from Rahul Gupta on November 4, 2025, frame it as a battle over AI’s role in e-commerce, with Amazon protecting its ad ecosystem. Business Insider describes it as ‘beefing’ over AI shopping tools.

Legal and Ethical Dimensions

Legal experts suggest this could set precedents for AI agent regulations. Reuters highlights the need for rules on AI-website interactions, especially in transactions. Perplexity’s past lawsuits over copyright and data security, as mentioned in X posts by Théo in May 2025, add layers to its credibility challenges.

Amazon’s move may influence how other platforms handle AI agents. The Information notes this as a high-profile tension between AI developers and retailers wary of automated interactions disrupting their systems.

Future of Autonomous Browsing

As AI agents like Comet evolve, companies must navigate terms of service and fraud concerns. Perplexity’s $500 million funding round in June 2025 underscores its momentum, but disputes like this could hinder adoption.

Industry insiders watch closely, with X posts from Slashdot and Eric Vanderburg on November 4, 2025, amplifying the fraud accusations. The outcome may shape AI’s integration into everyday online activities.

Broader Market Reactions

Market observers see this as part of a larger AI ethics debate. The Times of India reports Amazon’s explicit demand to stop bots from being part of Comet’s ecosystem.

Perplexity’s response emphasizes user rights, potentially rallying support from AI advocates. This feud could accelerate discussions on standardized protocols for AI agents in e-commerce.

Evolving AI Landscape

With Perplexity’s growth from 2 million users in 2023 to a billion-dollar valuation, the startup represents the vanguard of AI search and agents. Yet, persistent scraping controversies, as per Cloudflare’s findings, question its methods.

Amazon’s dual role—innovator and gatekeeper—highlights conflicts of interest. As reported in Investing.com, the cease-and-desist demands discontinuation of Comet’s purchasing functions on Amazon.

Stakeholder Perspectives

Investors like those in Perplexity’s rounds may face scrutiny. Wikipedia details its funding trajectory, while X sentiments vary from criticism of Perplexity’s practices to defenses of innovation.

The dispute underscores the need for clear guidelines, potentially leading to industry-wide standards for AI agents.