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Monday, 30 June 2025
Software & Apps

Senator FTC urges to check the high -priced bundle membership of Spotiff

Senator FTC urges to check the high -priced bundle membership of Spotiff

Two American senators have requested that the Federal Trade Commission (FTC) has investigated Spotify due to allegations that the company has bounded its musical streaming and audibook services in more expensive membership without getting the user’s consent, while in this process the creators have reduced royalty payments.

On Friday, June 20, American Senator Marsha Blackburn and Ben Ray Lujan Wrote a letter For FTC, claiming that Spotify converted standard premium membership in high -cost bundle membership without informing consumers. He also highlighted that existing American rules Allow digital music providers to pay a low music royalty rate if the membership is bundled with other valid offerings.

“Spotify’s intention seems clear – to reduce the statutory royalty given to lyricists and music publishers. It has not only damaged our creative community, but this action has also damaged consumers,” the letter states.

Last year, Mechanical licensing collective (MLC) allegedly sued Spotify to reduce lyricists and publishers, but the case was dismissed in January.

In March 2024, Spotify restructured its premium levels, incorporating a 15 -hour audibook, increasing the price of $ 12 for individuals and $ 20 for families. Users must manually get out of the plan.

This change has reportedly lost $ 230 million to the publishers in the first year, according to which Daniel AguireExecutive Vice President of National Music Publishers Association.

In a statement shared with DiversityA spotify spokesperson said that users were informed about the price hike a month ago and the platform “provides” to consider several schemes for users “with easy cancellation.

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