Spotify has announced its departure from Uruguay after the country’s parliament approved amendments to its copyright law, which would require “equitable remuneration” for artists. The announcement was made yesterday when a spokesperson confirmed that Spotify will begin to “phase out” its service in the country from January 1, 2024, with all operations ceasing by February of the same year.
Uruguay’s copyright law, which was amended with the introduction of the bill “Rendición de Cuentas,” aims to provide fair and equitable remuneration to artists in relation to their recorded material. It also introduces a requirement for “social networks and the Internet” to be treated as “formats for which, if a song is reproduced, the performer is entitled to financial remuneration.” The bill was first introduced by the Uruguayan Society of Performers (SUDEI) earlier this year, proposing to amend articles 284 & 285 of Uruguay’s copyright law.
Spotify had earlier threatened to end its service when the bill was tabled in July this year. In a letter sent to Uruguay’s Minister of Education, Pablo Da Silveira, a spokesperson for Spotify raised concerns that the proposed changes “lack clarity” and “an additional mandatory payment for music services,” which would make Spotify’s business in Uruguay unfeasible and negatively impact Uruguayan music and its fans.
In its statement confirming the end of its services in Uruguay, Spotify said, “Without clarity on the changes to music copyright laws included in the 2023 Rendición de Cuentas law – confirming that any additional costs are the responsibility of rights holders – Spotify will unfortunately begin to phase out its service in Uruguay effective January 1, 2024, and fully cease service by February.” The statement stressed that the company already pays nearly 70% of every dollar it generates from music to the record labels and publishers that own the rights for music, and represent and pay artists and songwriters. Further payments would make the business untenable
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