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Spotify to Raise Subscription Prices in France Due to New Music Industry Tax

The streaming giant criticizes the tax as ineffective and burdensome, warning of the highest fees in the EU for French users.

Overview

  • Spotify announces subscription price hikes in France in response to a new tax aimed at supporting the national music industry.
  • The tax, effective from January 1, imposes a 1.2% levy on music streaming services' revenue generated in France, with proceeds going to the Centre National de la Musique (CNM).
  • Spotify criticizes the tax as an unnecessary government money grab, arguing it will not effectively aid music and will burden users with the highest subscription fees in the EU.
  • Despite threats to withdraw from markets like Uruguay over similar taxes, Spotify has not indicated plans to exit the French market, emphasizing its importance to the company's bottom line.
  • Spotify's CEO, Daniel Ek, expresses concerns that the tax will impede the company's ability to operate in France, following a strong financial quarter with 16% revenue growth year-over-year.