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Two American senators asked the Federal Trade Commission (FTC) to investigate Spotify because of allegations that the company has gathered its musical streaming and audio services in a more expensive subscription without obtaining user consent, while reducing the creators to creators.
Friday, June 20, American senators Marsha Blackburn and Ben Ray Luján wrote a letter At the FTC, claiming that Spotify has converted standard subscriptions to standard for grouped subscriptions at higher cost without informing consumers. They also pointed out that American regulations Allow digital music suppliers to pay a reduced music royalty rate if the subscription is grouped with other legitimate offers.
“Spotify’s intention seems clear – to reduce the statutory royalties it pays to songwriters and music publishers. Not only did it harm our creative community, but this action has also harmed consumers,” said the letter.
Last year, the Mechanical license collective (MLC) continued Spotify for having allegedly compensated for songwriters and publishers, but the trial was rejected in January.
In March 2024, Spotify restructured its premium levels to include 15 hours of audio books, increasing the price to $ 12 for individuals and $ 20 for families. Users must manually withdraw from the plan.
This change would have prompted publishers to lose $ 230 million in the first year, according to Danielle AguirreExecutive vice-president of the National Music Publishers’ Association.
In a declaration shared with VarietyA Spotify spokesperson noted that users had been informed one month in advance of the price increase and that the platform offers “easy cancellations as well as multiple plans to consider”.
