Senators urge FTC to investigate Spotify’s higher-priced bundled subscription

The two US Senators have requested that the Federal Trade Commission (FTC) will investigate Spotify that the company has bundled its music streaming and audiobook services in a more expensive subscription, as well as reduce the Creator’s royal payment in the process.

Friday, June 20, US Senator Marsha Blackburn and Ben Ray Luzan Wrote a letter The FTC claims that the Spotify Standard is converted to high-expenditure bundle subscriptions without notifying customers. They have highlighted that existing US rules If the subscription is bundled with other valid offers, allow digital music suppliers to pay reduced music royalty rates.

The letter states, “The intention of Spotifi seems to be clear – it is to slash the statutory royalties of the lyrics and music publishers. It not only damaged our creative community, but also damaged customers,” the letter said.

Last year, the Mechanical licensing (MLC) Spotify has filed a case against the lyrics and publishers complaining against the Spotify, but the case was dismissed in January.

In March 2021, Spotify reorganizes its premium layers and incorporates 15 hours audioboxes, prices for individuals and $ 12 for families. Users need to manually get out of the plan.

This change has been reported to have lost $ 230 million in the first year of publishers, according to Daniel AguerThe Executive Vice President of the National Music Publishers Association.

Divide to a statement DifferentA spotfi spokesperson noted that users were notified about the price rise a month ago and the platform provided “easy cancellation as well as multiple plans for users’ considerations.