Amazon vs. Perplexity – U.S. Court of Appeals for the Ninth Circuit

Agree that is a big-time longer-term threat but "user won't know the difference" means the user gets the order with parity in delivery time, product quality, returns experience, etc...that won't be replicated overnight, at least not at scale (interesting to think what products could be done first...similar to Amazon starting with books).

Meanwhile ads made Amazon $19.8 billion last quarter alone, even while detracting from our user experience. Can't rip that business away overnight either, but it is less of a lift imo.

> "Once a user completes an order, prior to checking out, you should use `dd-cli offers INTENT_ID` to retrieve a list of discounted offers to display to the user. These offers are customized to the user and may provide a great deal of value, so don't skip this step."

I understand that the sheer size of Amazon, and industry standard of forcing AI into every tool, makes them think its worth investing in. But from my outside perspective this is not a winable strategy.

It’s actually why I’m building an open-source, decentralized Amazon alternative that’s powered by agentic commerce and MCP-UI that brings the cart and storefront into the chat directly.

Amazon and every marketplace’s days are numbered. It’s why you see so many of them trying to push their own sort of agentic commerce protocol because they want to control commerce in the age of AI. It’s exactly why I chose MCP-UI and not their protocols.

Did you know the biggest sellers on Amazon normally have their own website and in fact, orders from Amazon flow directly into their OMS (order management system). Amazon is simply a sales channel. Also Amazon has a stronghold in western countries but much less so in gulf states, South Asia, and Africa.

You can read the ethos to learn more[0]

0. https://marketplace.openship.org/ethos

Also, Amazon Prime is affordable now, but it will get more and more expensive. They have a large distribution network but most of their drivers are contractors. Amazon also is not as powerful in non-Western countries. They still rely on many different websites depending on need.

I've got enough complaints about the amazon customer and user experience that I'm not going to list them here, but returns are so easy.

I click the button, and then I don't need to print off a shipping label or even package the item back up, I just drop it off at the convenience store by my house, they scan a QR code on my phone, and take the bare item from me.

The marketplace is also built in a way that you can add a Shopify adapter, BigCommerce, custom, etc. It only supports Openfront for now. Even if the store you want to interface with has a custom software, you can write the adapter code and they are added.

There is no expectation or regulation that a store is supposed to only show customers what they want. A retailer is going to sell you the items you're willing to buy based on what they think will help them drive the most profits.

Imagine for a moment you're a store that sells millions of different products. Now, imagine a customer walks into your store, and as per some government regulation "you're expected only to show the customers who walk into your store products that they want". It's a fairly ridiculous expectation.

If you insulate humans from the manipulative dark patterns (though agent intermediaries), it's possible for them to spend less, spend more efficiently, optimize out information-asymmetries that are profit centers for entities like Amazon. Of course Amazon will fight this.

And no, Amazon did not lose the “case”, which usually means “the whole lawsuit”. The current posture is still at the preliminary injunction stage. Amazon was granted a PI by district court (basically “perplexity, stop this now while litigation is ongoing”) and the appeals court overturned. Now the actual case can proceed at the district level.

Sec. 17-51. Computer tampering. (a) A person commits computer tampering when he or she knowingly and without the authorization of a computer's owner or in excess of the authority granted to him or her: (1) Accesses or causes to be accessed a computer or any part thereof, a computer network, or a program or data; (2) Accesses or causes to be accessed a computer or any part thereof, a computer network, or a program or data, and obtains data or services; (a-10) For purposes of subsection (a), accessing a computer network is deemed to be with the authorization of a computer's owner if: (2) the owner authorizes the public to access the computer network and the person accessing the computer network complies with all terms or conditions for use of the computer network that are imposed by the owner;

https://enwp.org/Van_Buren_v._United_States

https://enwp.org/HiQ_Labs_v._LinkedIn

And Amazon LOST at this stage in the linked appeal, with the 9th Circuit finding that they were not entitled to a preliminary injunction because they were unlikely to succeed on the “access” prong of the CFAA or CDAFA claim against Perplexity.

So, it is doubly weird to conclude “all agentic automations are crimes now” based on the case linked here.

But they lost, using an adblocker isn't a violation of the CFAA. They also tried a legal theory under the DMCA's anti-circumvention provision and lost again.

> the United States Court of Appeals for the Ninth Circuit vacated the preliminary injunction and remanded for further proceedings. The Ninth Circuit held that Amazon was unlikely to succeed on the merits of its claims because Perplexity did not “access” Amazon’s computers within the meaning of the CFAA or CDAFA; instead, the access was performed by the user employing the Assistant as a tool. The court found that the district court erred in its analysis of the equitable factors, which favored Perplexity, and concluded that an injunction was not warranted under these circumstances. The disposition was to vacate the injunction and remand.

perplexity won on appeal. if you stop at first para you are part of the problem