Spotify has pulled out of Uruguay after the South American nation passed a bill introducing "equitable remuneration" for musicians.
The streaming giant made the announcement earlier this week, saying it will phase out its service in Uruguay from January 1st, 2024.
"Spotify already pays nearly 70 percent 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," the statement read. "Any additional payments would make our business untenable."
Spotify threatened to pull out of Uruguay last month when the bill—which sought to introduce fair and equitable remuneration for artists with regards to their recorded material—was first presented to the country's general assembly. The company claimed that no clarity had been given on whether additional costs would be the responsibility of rights holders or customers. Now that the bill has passed, Spotify has followed through on its threat.
"We want to continue giving artists the opportunity to connect with listeners, and Uruguayan fans the opportunity to enjoy and be inspired by their music," Spotify's statement continued. "Changes that could force Spotify to pay twice for the same music would make our business of connecting artists and fans unsustainable, and regrettably leaves us no choice but to stop being available in Uruguay."
Equitable remuneration is a compulsory license that must be paid when recorded music is played in a publicly accessible location, such as a shop or café. It's been part of UK music law since the '90s, with British artists collecting their remunerations from music copyright collective Phonographic Performance Limited (PPL).
Photo: Alexis Magnone