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In France, Spotify Faces a New ‘Tax’ Problem: What Is It?

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In France, Spotify Faces a New 'Tax' Problem: What Is It?

(CTN News) – France has recently implemented new tax regulations about streaming services, resulting in Spotify’s decision to withdraw its support from two upcoming music festivals in the country.

According to a report from NME, the Swedish streaming company has officially announced its withdrawal from Francofolies de La Rochelle and Printemps de Bourges, effective from 2024.

President Macron has acknowledged that this change will involve a “very low rate of levy on the turnover” of these services.

The Ministry of Culture in France has also confirmed these details, stating that streaming services will be required to contribute 1.2 percent of their turnover towards this tax.

However, platforms with a turnover below €20 million will be exempted from this tax obligation.

Spotify’s response to this alteration has been noteworthy.

In light of France’s new legislation, Spotify has advocated for a voluntary contribution as an alternative to the imposed tax.

Over the past few months, Spotify has encountered conflicts with various countries’ domestic laws.

In November, the company decided to cease its services in Uruguay due to the country’s new copyright regulations, which demand “equitable remuneration” for artists.

During that time, a spokesperson from expressed, “If changes were implemented that compelled Spotify to pay twice for the same music, it would render our business model of connecting artists and fans unsustainable. Regrettably, this leaves us with no option but to withdraw our availability in Uruguay.”

Spotify has recently implemented controversial modifications to its platform, such as introducing a streaming threshold of 1,000 plays before songs can generate royalties.

According to Spotify’s data, there are approximately 100 million songs available on the platform, but only around 37.5 million meet the new requirements to generate revenue.

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