Spotify Gears Up for Battle in D.C.
Spotify is bringing the big guns to Washington, D.C. in the form of four major lobbying firms they hired this week.
Currently, the U.S. government, and the Justice Department in particular, is considering changes to the way it requires music services like Spotify and Pandora to pay royalties to recording artists and songwriters.
Spotify currently pays artists based on a rate set by the government, but the Justice Department is weighing changes to these rules. A little lobbying muscle in Washington allows Spotify to petition for lower rates.
Politico reported yesterday (April 15) that Spotify hired the lobbying companies to represent them before the powers that be.
But royalty payments aren't the only reason Spotify wants to up the ante in Washington. As Apple prepares to launch its new streaming service, the regulators at the Federal Trade Commission are raising their eyebrows over the increased scope of the company.
Part of the FTC's job is to keep the business playing field level, and Apple's reach may give them an unfair advantage in negotiating deals with music labels. It would obviously be in Spotify's interest for the FTC to make Apple walk back its streaming service plans.
Apple already has a big presence in Washington, with six major lobbying firms at their disposal.