Reported 7 months ago
The National Music Publishers Assn. filed a complaint with the Federal Trade Commission against Spotify, objecting to their plan to bundle music and audiobooks which would lower royalties for songwriters and artists by an estimated $150 million annually. Spotify confirmed the reduction in royalties but claimed creator earnings would increase overall. The complaint accuses Spotify of deceptive practices by converting subscribers to bundled subscriptions without consent, raising prices, and obstructing cancellations. It alleges Spotify's conduct harms market competitors, songwriters, and music publishers by reducing royalties and distorting competition, calling for an FTC investigation to stop Spotify's misconduct. Spotify defended its actions, emphasizing its contributions to songwriter remuneration and claiming that changes in product offerings lead to varying payment structures agreed upon with publishers.
Source: YAHOO