Lawmakers Urge FTC Look At Spotify Bundling Practices

Senators Marsha Blackburn (R-Tenn.) and Ben Ray Luján (D-N.M.) Friday urged the Federal Trade Commission (FTC) to investigate Spotify’s bundling practices, accusing the streaming giant of converting all premium music subscribers into higher-priced bundled subscriptions without their consent. 

The bundling, which began in 2024, includes 15 hours of audiobook streaming with standard premium music plans, allowing Spotify to qualify for a lower mechanical royalty rate in the U.S. This move has reduced royalty payments to songwriters and publishers by an estimated $230 million in the first year alone, with projections of $3.1 billion in losses by 2032, according to the National Music Publishers Association (NMPA).

The senators criticized Spotify for exploiting regulatory loopholes, arguing that the practice harms consumers by increasing subscription fees (to $11.99 for individuals and $19.99 for families) and undermines the U.S. music royalty system. 

They also noted that Spotify’s “Basic Plan,” a music-only option introduced after backlash, is hard to access and unavailable to new subscribers. The NMPA and other industry groups, like the Mechanical Licensing Collective, have previously challenged Spotify’s actions, though a federal judge ruled in 2024 that the bundling complied with existing regulations.

Spotify defended its approach, stating it aligns with industry standards, notifies users of price changes in advance, and offers easy cancellations. However, the bipartisan call for an FTC probe reflects growing concerns over the impact on both consumers and the creative community.