Two U.S. senators are calling for an official investigation into Spotify’s latest subscription practices, accusing the streaming giant of exploiting loopholes to reduce payments to music creators while inflating costs for consumers.
Spotify Faces Scrutiny for Bundling Music and Audiobooks
On June 20, Senators Marsha Blackburn and Ben Ray Luján sent a formal letter to the Federal Trade Commission (FTC), urging the agency to examine Spotify’s recent changes to its subscription model. The senators allege that Spotify bundled its music streaming service with 15 hours of audiobooks in a new, higher-priced subscription plan — implemented without proper user consent.
The revised Spotify Premium plan now costs $12 for individual users and $20 for families. Customers are required to opt out manually if they do not want the bundled service.
Royalty Payments to Creators Allegedly Reduced
A major concern raised by the senators centers on Spotify’s use of bundling to exploit regulatory loopholes. Under U.S. law, digital providers can pay reduced royalty rates for bundled services. According to the letter, this tactic allows Spotify to “slash the statutory royalties” paid to songwriters and publishers — a move critics argue severely impacts the creative community.
Danielle Aguirre, EVP of the National Music Publishers’ Association, estimates that music publishers lost approximately $230 million during the first year of Spotify’s new subscription structure.
Spotify Responds to Allegations
In response, a Spotify spokesperson told Variety that users received advance notification of the price increase and that the platform offers “easy cancellations and multiple plan options.”
Also Read: Spotify Code Hints at Lossless Audio Tier
Spotify previously faced a related lawsuit from the Mechanical Licensing Collective (MLC), which accused the company of underpaying royalties. The case was dismissed in January 2025.
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