A US federal appeals court has ruled in favor of Perplexity AI, overturning an injunction that had blocked the company’s AI-powered Comet browser from interacting with Amazon’s platform while litigation proceeds.

The Ninth Circuit held on Tuesday that Amazon is unlikely to succeed in claims alleging violations of the Computer Fraud and Abuse Act and California’s Comprehensive Computer Data Access and Fraud Act, because the evidence currently indicates that users, not Perplexity, access Amazon’s systems.

The appellate court also concluded that Amazon failed to demonstrate the other legal requirements needed for injunctive relief, including irreparable harm and that the balance of public interest favored blocking the technology. Judges said maintaining the injunction would impose an unnecessary burden on Perplexity and could restrict innovation in agentic AI.

Amazon sued Perplexity in November 2025, alleging its AI shopping assistant improperly accessed Amazon’s platform.

Although a lower court granted Amazon a preliminary injunction in March, that order was stayed during the appeal. The case has now been remanded to the US District Court for the Northern District of California for further proceedings.