Spotify fined $5million for breach of data rules in Sweden

Music streaming giant Spotify was fined 58 million kronor (USD 5.4 million) on Tuesday (June 13) for not properly informing users how their data was being used, said Swedish authorities. Spotify is planning to appeal the decision.

Sweden's authority for privacy protection (IMY) said that it reviewed "how Spotify handles customers' right of access to their personal data."

"As a result of the shortcomings identified, IMY is imposing a fine of 58 million kronor on the company," the authority said.

The regulator said that under the European data protection act GDPR, it was the users' right to know what data a company has about them and how that data was being used. It said that Spotify did present the data it had when a user requested it but the company was not sufficiently specific about how that data was being used.

"Since the information provided by Spotify has been unclear, it has been difficult for individuals to understand how their personal data is processed and to check whether the processing of their personal data is lawful," IMY said.

The regulator also said that the "shortcomings discovered are considered, overall, to be of low severity," motivating the size of the fine by Spotify's user count and revenue.

Spotify, the streaming giant, is listed on the New York Stock Exchange. In April this year, Spotify announced that it had crossed the mark of 500 million monthly active users. It said that there were 210 million paying subscribers.

Spotify rejects IMY findings

Spotify told AFP in an emailed statement that it "offers all users comprehensive information about how personal data is processed".

IMY "found only minor areas of our process they believe need improvement. However, we don't agree with the decision and plan to file an appeal," Spotify said.

AFP also reported a statement by a privacy activist group Noyb, which said that the fine was slapped against Spotify following a complaint and subsequent litigation from the group. The group said that while it welcomed the decision it lamented the tardiness of the authorities.

"The case took more than four years and we had to litigate the IMY to get a decision. The Swedish authority definitely has to speed up its procedures," Stefano Rossetti, a privacy lawyer at Noyb, was quoted saying in the statement.

(With inputs from agencies)

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