Amazon.com Services, LLC filed suit against Perplexity AI, Inc., an artificial intelligence company, asserting that Perplexity’s web browser tool, Comet, unlawfully accessed Amazon’s website in violation of the federal Computer Fraud and Abuse Act (CFAA) and California’s Comprehensive Computer Data Access and Fraud Act (CDAFA). Perplexity’s Comet browser includes an AI “Assistant” that, when activated by a user, navigates Amazon.com on the user’s behalf, sending browser screenshots to Perplexity’s servers for further instruction. Amazon claimed that this use of the Assistant, despite their explicit prohibition, amounted to unauthorized access to its servers.
The United States District Court for the Northern District of California granted Amazon a preliminary injunction, finding that Amazon was likely to succeed on its claims under both the CFAA and CDAFA. The district court concluded that Perplexity, through its Assistant, accessed Amazon’s password-protected accounts without authorization, obtained private information, and caused Amazon to incur significant costs responding to this activity. The court also determined that the equitable factors supported granting the injunction, citing irreparable harm and the public interest.
On appeal, 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.
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