The two U.S. senators have requested that the Federal Trade Commission (FTC) investigate Spotify on allegations that it had combined music streaming and audiobook services into more expensive subscriptions without user consent, while also reducing royalty payments to creators in the process.
On Friday, June 20th, U.S. Senators Marsha Blackburn and Ben Ray Lejean wrote to the FTC, claiming that Spotify converted their standard premium subscription into a high-cost bundled subscription without notifying consumers. They also highlighted that existing US regulations allow digital music providers to pay for reduced music royalty rates if subscriptions are bundled with other legitimate products.
“Spotify’s intention seems clear: to reduce the legal loyalty we pay to songwriters and music publishers. Not only has this hurt our creative community, but this action has hurt consumers,” the letter said.
Last year, Mechanical License Collective (MLC) sued Spotify, allegedly underestimating songwriters and publishers, but the lawsuit was dismissed in January.
In March 2024, Spotify rebuilt the Premium Tier, increasing it to $12 for individuals and $20 for families, including a 15-hour audiobook. Users must manually opt out of the plan.
According to Danielle Aguirre, executive vice president of the National Music Publishers’ Association, the change caused publishers to lose $230 million in their first year.
A Spotify spokesperson said in a statement shared with Variety that users were notified of price increases a month ago, and that the platform offers “easy cancellations and multiple plans for multiple users to consider.”
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