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Texas AG Ken Paxton Launches Investigation Into Music Streaming Platforms Over Alleged Payola

Texas Attorney General Ken Paxton has launched an investigation into Spotify, Apple Music, Pandora, Amazon Music, and YouTube Music over alleged payola schemes. The investigation examines whether streaming services entered into undisclosed financial arrangements with record labels, promoters, or third parties to boost visibility, playlist placement, or recommendation rankings in violation of Texas law. Civil Investigative Demands (CIDs) have been issued to the platforms as part of the investigation.

Texas AG Investigates Streaming Platform Payola Schemes

The Texas Attorney General has issued Civil Investigative Demands to Spotify, Apple Music, Pandora, Amazon Music, and YouTube Music as part of an investigation into alleged payola schemes—undisclosed payments to boost playlist placement and algorithmic recommendations. The investigation will examine whether streaming services entered into undisclosed financial arrangements with record labels, promoters, or third parties in violation of Texas law. Music streaming platforms should review their financial arrangements with record labels, promoters, and third parties for compliance with Texas consumer protection standards.