Attorney General Ken Paxton investigating Spotify, Apple Music for alleged bribery

AUSTIN (KVIA) -- Texas Attorney General Ken Paxton said he launched an investigation into popular streaming platforms over alleged bribery schemes. Some of the platforms involved include Spotify, Apple Music, Pandora, Amazon Music and YouTube Music.

The investigation will look into whether the platforms entered undisclosed financial arrangements with record labels, promoters or third parties, Paxton said in a press release Thursday. Paxton described the alleged schemes as "payola."

Payola "is the practice of receiving compensation in exchange for preferential promotion without proper disclosure," and is prohibited by federal law. For example, record labels or artists could pay to be included in song suggestions.

“Music artists deserve to compete on a level playing field, not one distorted by bribes, and listeners deserve transparency in what they are being recommended,” said Attorney General Paxton.

He said he issued Civil Investigative Demands to the companies.

Attorney General Ken Paxton will face U.S. Senator John Cornyn in a runoff election May 26 for the Texas U.S. Senate race.