Unitarity with respect to the clock of a dynamical local observer and the Einstein equivalence principle

We investigate the unitarity of quantum evolution relative to an internal time defined by a local observer's clock. The observer is modeled as a relativistic particle carrying both a clock and a matter-field detector, analyzed first on a fixed curved background and subsequently within a fully diffeomorphism-invariant theory of dynamical gravity. In the former case, we find that evolution with respect to the internal clock time is generally nonunitary, implying a violation of the Einstein equivalence principle at the quantum level. In contrast, in the latter case, diffeomorphism invariance allows us to adopt observer-centric coordinates without loss of generality. On the resulting partially-reduced phase space, one of the diffeomorphism generators becomes linear in the clock Hamiltonian, generating a relational evolution that is consistent with the remaining diffeomorphism constraints. Assuming that an effective quantum field theory exists to be consistent with the diffeomorphism invariance, these features ensure unitary evolution relative to the internal clock, thereby preserving the equivalence principle even in the quantum regime. Our results highlight the fundamental role of diffeomorphism invariance in shaping relational unitary evolution from the perspective of a local observer.