Swedish authorities fined the world’s largest music streaming service Spotify 58 million kronor ($5.4 million) on Tuesday for failing to adequately disclose to users how it used the information it acquired about them.
Spotify was fined for breaching data: Spotify declared it would challenge the judgment. According to IMY, the Swedish Authority for Privacy Protection had examined “how Spotify handles customers’ right of access to their data.”
“IMY is imposing a fine of 58 million kronor on the company due to the shortcomings identified,” the authority stated.
The regulator emphasizes that under the European data protection act, or GDPR, corporations must inform users about the information they possess regarding them and how it is utilized.
IMY acknowledged that Spotify provided data upon request but claimed that the firm did not provide enough information regarding how it was using the data.
According to IMY, people have found it challenging to comprehend how Spotify handles their data and determine the legality of processing their data due to the ambiguous information provided by the company.
The regulatory authorities determined the amount of the fine based on Spotify’s user base and revenue. They further justified their decision by stating that they generally considered the identified shortcomings low severity.
Spotify Faces Fine and Dispute over Privacy Practices
In April, the New York Stock Exchange-listed streaming behemoth revealed that it had surpassed 210 million paying customers and 500 million monthly active users.
In an email to AFP, Spotify expressed disagreement with the conclusions of IMY, stating that they provide all users with comprehensive information about processing personal data.
IMY stated that only small elements of our process need improvement. However, we disagree with the ruling and intend to appeal it,” Spotify stated.
In a separate statement, the privacy advocacy group Noyb noted that the fine resulted from their complaint and subsequent legal action. While they applauded the verdict, they lamented the authorities’ delay.
“We had to litigate the IMY to get a decision, and the matter took more than four years. According to a statement from privacy attorney Stefano Rossetti of Noyb, the Swedish body must unquestionably expedite its processes.