Spotify will stop working in Uruguay from 2024, blame new laws

Spotify will stop working in Uruguay from February 2024 because Recently passed changes to the country’s music copyright law requiring artists to be paid more fairly. The platform announced its decision last Monday (20).

The new legislation, approved by the local Congress in October, is based on a project developed by the Uruguayan Translators Association (SUDEI). According to the organization, Digital media has left people who make a living from music in the country at a “huge loss” in terms of royalty payments.

With this in mind, the group proposed amending Uruguay’s copyright law with the addition of articles 284 and 285, among others. The first agreements on this The artist’s right to receive financial compensation when their music is played on streaming platforms such as Spotify and social media.

The second determines: The right to “fair and equal pay” for writers, performers, composers and other professionals involved in music production. In other provisions, the new legislation also allows artists to claim compensation for the reproduction of their works directly from streaming services.

double payment

Questioning the changes made to the law since it was first discussed in the Uruguayan parliament, Spotify says new fair pay included in bill could force you to pay twice for the same music. In this way, continuing the business will become unsustainable, as the company emphasizes.

The company stated the following in its statement: Pays 70% of every dollar earned from music to record labels and publishers, who are responsible for managing royalties and compensating artists and songwriters. A spokesperson for the brand also said streaming helped the country’s music industry grow 20% in 2022 alone.

Considering the uncertainties caused by the legislation, Spotify will close its operations in Uruguay in February next year. Since the account country is defined based on the location of the device, service users in the region will no longer be able to access the account after the specified deadline.