Two U.S. senators have called on the Federal Trade Commission (FTC) to investigate Spotify, alleging that the music streaming company moved subscribers onto a higher-priced bundled service without obtaining explicit user consent and simultaneously reduced royalty payments to songwriters and publishers.
In a letter sent Friday, June 20, senators Marsha Blackburn and Ben Ray Luján stated that Spotify had quietly converted standard premium subscription plans into more expensive packages integrating audiobook services. They argued this practice not only took place without clear notification but also appeared intentionally designed to exploit lower statutory royalty rates permitted by U.S. regulations when subscriptions bundle multiple legitimate digital offerings.
“Spotify’s intent seems clear—to slash the statutory royalties it pays to songwriters and music publishers,” Blackburn and Luján wrote. “Not only has this harmed our creative community, but this action has also harmed consumers.”
Their letter comes in the aftermath of a dismissed lawsuit filed last year by the Mechanical Licensing Collective (MLC), accusing Spotify of shortchanging composers and publishers on owed royalties. Spotify successfully defended itself against that case, which was dismissed this January.
In March 2024, Spotify reconfigured its Premium subscription tiers to automatically include 15 hours of audiobook listening per month, thus increasing monthly rates to $12 per individual user and $20 for families, unless subscribers specifically opted out. This adjustment reportedly caused publishers an estimated $230 million loss in royalties within the first year alone, according to Danielle Aguirre, the executive vice president of the National Music Publishers’ Association.
Spotify responded in a statement, emphasizing that customers had received notifications a month ahead of the subscription changes, highlighting ease-of-cancellation options, and noting that multiple pricing and subscription alternatives were available for consideration.
