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Amazon vs. Perplexity: AI Legal Battle Unfolds

Amazon vs. Perplexity: AI Legal Battle Unfolds

07 Nov, 2025

Amazon is making headlines with its recent legal actions against Perplexity, a startup that has developed an AI-powered browser named Comet. The tech giant has sent a cease and desist letter to Perplexity, claiming that Comet has violated its terms of service by failing to identify itself as an AI agent. This allegation raises questions about the role of AI in online shopping and the ethical responsibilities of AI developers.

Perplexity contends that Comet operates under the same permissions as any human user, thus it should not be required to disclose its AI nature. This is significant in the Indian context, where the e-commerce market is booming, and the use of AI in shopping is becoming more common. Consumers are increasingly relying on technology to enhance their shopping experiences, making the outcome of this dispute particularly relevant.

The legal confrontation highlights a growing concern over the control that major tech companies like Amazon exert over their platforms. Perplexity argues that Amazon may prefer its own AI shopping assistant, Rufus, over competitors. This could stifle innovation and limit choices for consumers. In India, where personal choice and convenience are paramount, such monopolistic practices could have serious implications for shoppers.

Moreover, the debate points to a larger issue in the tech landscape: the battle for AI supremacy. Companies are increasingly protective of their technologies, leading to tighter regulations and restrictions. For example, recent changes in WhatsApp's business API policy have banned general-purpose AI chatbots, further illustrating the challenges faced by AI companies.

Amazon's response emphasizes that other third-party AI agents comply with identification protocols. This raises an important discussion about transparency in digital transactions, especially in a diverse market like India, where users may value clarity and trust in their online interactions.

As this situation unfolds, it serves as a reminder of the complexities and competitive tensions surrounding AI technology. The outcome may not only influence the future of AI shopping assistants but also set a precedent for how digital marketplaces operate in India and beyond.

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