Two US senators are calling on the Federal Trade Commission (FTC) to launch an investigation into Spotify over claims that it has forced Premium subscribers into higher-priced “bundled subscriptions” without their knowledge or consent.

Last Friday, Republican Senator Marsha Blackburn of Tennessee and Democratic Senator Ben Ray Luján of New Mexico submitted a formal letter urging the FTC to examine Spotify’s bundling services — specifically, its combination of music streaming and audiobook services under one plan.

• READ MORE: Is Spotify’s HiFi lossless streaming actually coming? Leaked code says yes

Under US regulations, digital music providers can pay a lower music royalty rate if their paid music subscription offering is bundled with other legitimate product offerings.

The letter argues that Spotify has “exploited” this rule by reclassifying its Premium Individual, Duo, and Family subscription plans as “bundles” after it began including audiobook access last March.

“Spotify’s intent seems clear – to slash the statutory royalties it pays to songwriters and music publishers. Not only has this harmed our creative community, but this action has also harmed consumers,” it states.

Last year, the Mechanical Licensing Collective (MLC) sued Spotify for allegedly underpaying royalties to songwriters and publishers by tens of millions of dollars.

The tech giant added 15 hours of audiobook access to its Premium tiers, raising the price to $12 for individuals and $20 for families at the time.

In the suit, MLC argued that after adding audiobook access, Spotify “improperly” categorised its service in a way that would significantly reduce the amount of royalties it paid despite there being “no change to the Premium plan and no corresponding reduction to the revenues that Spotify generates.”

The change reportedly caused a $230 million loss for publishers in its first year, according to Danielle Aguirre, executive vice president and general counsel of the National Music Publishers’ Association.

Blackburn and Luján’s letter also notes that while Spotify has quietly relaunched its music-only “Basic Plan” following backlash from its “bundling” move, this plan is “hidden” from most users and only available to certain existing subscribers.

“As of January 2025, only a handful of Spotify’s millions of Premium Plan subscribers switched back to a music-only ‘Basic’ plan,” the letter states.

In a statement to Variety, a Spotify spokesperson defended the company’s practices, saying that users were notified a month in advance of any price increases and that the platform offers “easy cancellations as well as multiple plans for users to consider”.

The post “Spotify’s intent seems clear”: US senators call for FTC probe into Spotify’s subscription bundles – here’s why appeared first on MusicTech.