Spotify to Finally Stay in Uruguay
By Pittaluga Abogados
Spotify will remain available in Uruguay after the government clarified that recent changes in music copyright law means that the rightsholders—to whom Spotify pays roughly 70% of every dollar it generates for music—should be responsible for these costs.
On December 1, 2023, Spotify announced that it would begin to phase out its service in Uruguay effective January 1, 2024, and fully cease service by February.
The decision came after the government of Uruguay passed a budget bill that included changes to the way music works in the country. The changes in this bill could forced Spotify to pay twice for the same songs. "Unless the government makes it clear that record labels and publishers to whom we pay that 70% should bear the responsibility for these costs, this will make our business of connecting artists and fans unsustainable," the company stated at that moment.
