US Senators Urge FTC to Investigate Spotify Bundled Subscription Practices

U.S. Senators Marsha Blackburn and Ben Ray Luján have urged the Federal Trade Commission to investigate Spotify for converting its premium music subscribers into higher-priced bundled subscriptions that include audiobooks without users' consent. This change, which raised subscription costs, allegedly allows Spotify to reduce the royalties it pays to songwriters and music publishers by exploiting a federal regulation that permits lower royalty rates for bundled services. The senators argue that this practice harms both consumers, who are forced into pricier plans without clear choice, and the music royalty system, potentially costing songwriters billions of dollars. The National Music Publishers Association supports the investigation, highlighting substantial losses in royalties due to Spotify's bundling strategy. Spotify maintains that it informed users in advance of price increases and offers multiple subscription options alongside easy cancellation processes, defending its approach as industry standard. The FTC probe is seen as crucial to protecting consumer rights and preserving fairness in the music marketplace amid ongoing scrutiny of Spotify's practices.