Texas AG accuses music platforms of accepting bribes to promote artists
Illustration of music streaming platforms, Paris, April 18, 2024. Deezer, Sporify, Amazon music. (Photo by Riccardo Milani / Hans Lucas / Hans Lucas via AFP) (Photo by RICCARDO MILANI/Hans Lucas/AFP via Getty Images)
Texas AG Ken Paxton has launched an investigation into numerous music streaming services, including Spotify and Apple Music, over alleged payola schemes.
According to the AG, the platforms have been accepting bribes to promote certain artists and content.
Texas music investigation
Paxton's new suit compares the allegations to the early 20th century radio practice of payola, which was federally prohibited to encourage equal opportunity in the industry. Payola is the practice of receiving compensation in exchange for preferential promotion without proper disclosure.
The companies listed in the release are Spotify, Apple Music, Pandora, Amazon Music, and YouTube Music.
As part of the investigation, Paxton has issued Civil Investigative Demands ("CIDs") to the companies.
What's next:
The investigation will examine whether streaming services have entered into undisclosed financial arrangements with record labels, promoters, or third parties to boost visibility, playlist placement, or recommendation rankings in violation of Texas law.
What they're saying:
"Music artists deserve to compete on a level playing field, not one distorted by bribes, and listeners deserve transparency in what they are being recommended," said Attorney General Paxton. "That is why I am investigating these popular streaming platforms. I will ensure that if any big streaming service is accepting bribes to push certain content and deceive users, they will be held accountable to restore fairness and integrity in the music industry."
The Source: Information in this article comes from the Texas attorney general's office.