Spotify protests tax on streaming platforms – La Nación

2024-09-25 17:43:07

Las streaming platforms They no longer feel so comfortable in France, where the green light was given to a new tax which will tax these online music services with 1.2% of their national income to support local music.

In fact, the measure would have the executives of Spotifythe leading music app in France and the Benelux region, which has expressed harsh protests against the measure and announced some actions in response.

President Emmanuel Macron backs tax on streaming platforms. (Europa Press)

The French government announced that the new tax 1.2% on the benefits of these platformswill come into force from 2024.

While the objective with this provision, promoted by the president Emmanuel Macronis to generate at least “15 million euros” in income for the State.

Now, the tax will be applied to the income generated in France both through subscription streaming services and through free content sharing platforms.

According to the French Ministry of Culturethose platforms with annual revenues of less than will not be included in the regulation 20 million euros.

Furthermore, it is important to highlight that the initiative was voted on in the French Senate last November during the approval of the national budget for 2024.

Organizations such as the Union of French Independent Phonographic Producers (UPFI)Union of Current Music (SMA) and the National Union of Musical and Variety Shows (PRODISS)as well as the Society of Authors, Composers and Music Publishers (Sacem) have expressed support for the legislation.

While the French government assures that the tax will be used to finance the National Music Center (CNM), an entity whose purpose is to provide support to the French music industry.

Spotify, in disapproval, withdraws its support for festivals in France and plans further action in 2024. (REUTERS/Mussa Qawasma/File Photo)

Despite local support, there is also strong opposition to the new tax from some of the affected platforms.

In response, they promoted a voluntary contribution and declared that they had reached an agreement that includes Apple, Deezer, Meta, Spotify, YouTube y TikTokto gather more than “14 million euros“in 2025 for the country’s music sector.

“This is a real blow to innovation and the growth prospects of recorded music in France,” Spotify said, adding that it is “evaluating the follow-up to be given to the implementation of this inequitable, unjust and disproportionate measure.”

Meanwhile, its subsidiary in France announced that it will cease its support for the festivals in response. Francofolies of La Rochelle y Bourges Spring from 2024, events where the company participated promoting emerging artists.

In addition, the platform announced that there will be more announcements related to this situation at the beginning of next year.

This is not the first time that Spotify has entered conflict with the laws internally from other countries in recent months.

Last November, the platform announced that it will no longer provide its services in Uruguay due to the country’s copyright laws that would require “equitable remuneration” for artists.

“Changes that could force Spotify to pay twice for the same music would make our business of connecting artists and fans unsustainable, and unfortunately leave us no choice but to stop being available in Uruguay,” a company spokesperson said at the time.

Spotify has recently made controversial changes to its platform, including a streaming threshold of 1,000 views before the songs can generate royalties.

According to data from the platform, there are around 100 million songs on the servicebut only about 37.5 million meet the new requirements to generate income.

By: Infobae