Music Streaming Service Spotify Faces $5 Million Fine For Data Law Breach

(CTN News) – On Tuesday, Spotify was ordered by the Swedish authorities to pay 58 million kronor ($5.4 million) to cover the costs of not informing its customers about how their data was being used by the music streaming giant. However, Spotify is considering challenging the decision.

In a recent statement, the Swedish Authority for Privacy Protection (IMY) said it had carried out a review of how Spotify had handled the rights of its customers to access their personal data.

” In response to the deficiencies identified, IMY has decided to fine the company with 58 million kronor due to the deficiencies,” the authority said in a statement.

A regulator pointed out that under the rules of the European data protection act GDPR, users have a right to know what data a company holds about them as well as how that data has been used by that company.

“While Spotify did hand out the data it had when requested by an individual, the firm had not been able to provide sufficient information as to how that data was being used,” IMY pointed out in an interview.

IMY pointed out that because Spotify’s information has been unclear, it has been difficult for individuals to understand how their personal data is processed and to check whether the processing of their personal data is allowed under current laws,” they added.

Furthermore, it went on to say that “the shortcomings discovered are considered, in general, to be of low severity,” which rationalized the size of Spotify’s fine based on the vast number of users and revenue it generates.

In April, the company announced that it had crossed 500 million monthly active users with 210 million paying subscribers, making it the largest music service in the world. It is listed on the New York stock exchange.

AFP received an emailed statement from Spotify, in which it rejected the findings, stating that it “offers all customers comprehensive information about how their personal data will be utilized.”.

“IMY found only minor improvements needed in the areas where they believe our processes need to be improved. However, Spotify disagrees with the decision and plans to appeal it,” Spotify said in a statement.

According to a separate statement from privacy activist group Noyb, the fine was imposed following a complaint and subsequent litigation filed by the group, and while the group welcomed the decision, it lamented that the authorities had been late in making their decision.

A privacy lawyer said in a statement that the case took more than four years to resolve, and that we required recourse to the IMY in order to get a decision. The Swedish authorities need to speed up the process,” he said.

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