Senators Push FTC Probe of Spotify Bundling

U.S. Senators Marsha Blackburn and Ben Ray Luján have requested that the Federal Trade Commission investigate Spotify for converting premium music subscribers to higher-priced bundled plans including audiobooks without proper notice or consent. This shift enabled Spotify to pay lower royalty rates, leading to estimated losses of hundreds of millions of dollars for songwriters and music publishers. The senators argue that Spotify's actions harm consumers by raising prices and limiting choices, and also undermine the music royalty system. In response to criticism, Spotify introduced a basic music-only plan, but it is difficult to access and unavailable to new subscribers. Legal challenges from the Mechanical Licensing Collective were dismissed by a federal judge, who found Spotify's bundling practice compliant with current regulations. The National Music Publishers Association continues to oppose the bundling, citing negative impacts on creators and the industry.