

Music giant Spotify is under fire from a bipartisan coalition of senators calling their recently instituted program to bundle audiobook subscriptions separately from their standard premium subscription into question. This comes after the bundling scheme was already taken to trial under accusations that combining the two distinct content sections on the platform allowed the company to pay artists less on royalties. Unfortunately, the case was dismissed in January and despite Mechanical Licensing Collective (the original plaintiffs in the suit) asking the court to appeal they appear to have found a savior in an unlikely place. The halls of congress.
Senator Marsha Blackburn (R-TN) and Ben Ray Luján (D-NM) have sent a letter to the Federal Trade Commision (FTC) accusing Spotify of unethical business practices and demanding an immediate investigation into the megacorporation. According to musicbusinessworldwide the letter was quie scathing in its accusations saying “We have serious concerns about Spotify’s recent move to convert all of its premium music subscribers into different—and ultimately higher-priced — bundled subscriptions without their knowledge or consent. These actions harm consumers and could deeply damage the marketplace and the music royalty system. We urge the FTC to investigate the impact of Spotify’s recent actions, to take steps to protect Americans from being forced into subscriptions without notice or choice, and to safeguard the music marketplace.”
The letter also alleges that Spotify’s recent actions harm artists and consumers alike “Spotify’s intent seems clear—to slash the statutory royalties it pays to songwriters and music publishers. Not only has this harmed our creative community, but this action has also harmed consumers.”
These accusations are pretty damning, according to the Music Publisher’s Association the change in bundling has already cost publishers and artists $230 million. Whether the FTC will see this change in Spotify’s business practices as the obvious grift it is or if it will slide off the corporation’s back like all of their other legal challenges remains to be seen.
