Spotify Begins Divestment from France as Reaction to Music Streaming Tax
Spotify is pulling support for two music festivals in protest against a controversial new tax directed at music-streaming platforms operating in France, and threatened more action will follow in the coming months.
While all the major music-streaming platforms have come together in opposition to the new law, including Apple, Google’s YouTube, and local player Deezer, Spotify has been the most vocal.
In the wake of the announcement last week, Spotify said that the move was a “real blow to innovation,” and that it was evaluating its next moves.
The company later pulled a 180-degree turn when the government gave assurances that music-streaming platforms wouldn’t be expected to cover any extra costs resulting from the law.
“Spotify will have the means to absorb this tax, but Spotify will disinvest in France and will invest in other markets,” Monin said in an interview with FranceInfo last week.
