In a recent development, music streaming services, including industry giant Spotify, have voiced their apprehensions regarding the French government’s proposed tax on music streaming services. Spotify, in particular, has issued a stark warning, suggesting that such a move may prompt the company to deprioritize France in its future business endeavors.
Antoine Monin, the Director General of Spotify France, expressed his dismay over the proposed tax, labeling it a “monumental strategic error” that contradicts key economic, cultural, and European technology issues. Monin’s concerns were outlined during an interview with the French news channel France Info.
Monin underscored the potential adverse impact of the tax on European streaming companies, singling out Spotify and Deezer in comparison to their US-based counterparts like Apple, Amazon, and YouTube. He argued that the proposed tax would disproportionately affect European platforms, given their dominant position in the French streaming market and their primary focus on music streaming. This stands in contrast to the diversified portfolios of major tech giants operating in the sector.
During the interview, Monin emphasized, “The adoption of this tax is really a blow to the music sector, to innovation, and to European independent platforms like Spotify or Deezer.” He pointed out the unique challenges faced by European platforms and the detrimental consequences the tax could have on the music industry’s growth and innovation.
As discussions surrounding the proposed tax continue, the music streaming industry awaits further developments, with Spotify’s warning serving as a prominent voice against the potential ramifications of such regulatory measures.