Amazon Loses Landmark Case as Appeals Court Rejects Attempt to Block AI Competition.

Amazon’s attempt to use federal anti-hacking law to stop an AI competitor has backfired after the U.S. Ninth Circuit Court of Appeals rejected its Computer Fraud and Abuse Act (CFAA) claims against Perplexity AI’s Comet browser. The court ruled that when consumers authorize an AI assistant to browse, compare prices, or shop on their behalf, it is the user’s choice—not unauthorized access by the software. The decision is a major defeat for Amazon’s efforts to control how customers use its platform and could limit the ability of dominant tech companies to weaponize anti-hacking laws against AI innovation and competing browser technologies. While Amazon can still pursue other legal claims, its CFAA strategy has suffered a high-profile loss that strengthens consumer freedom and opens the door for more AI-powered shopping tools to challenge the e-commerce giant’s dominance.