01:26 PM EDT, 06/13/2024 (MT Newswires) -- Spotify ( SPOT ) shares fell nearly 2% in recent Thursday trading, a day after a songwriters' trade association filed a complaint with the Federal Trade Commission challenging the music-streaming service's "bundled" audiobook-and-music offering that allegedly led to reduced music royalties.

The National Music Publishers' Association accused Spotify ( SPOT ) of "unfair and deceptive" conduct that forces users into higher-cost bundled subscription plans that are difficult to cancel. The complaint also alleges that by combining its prior music-only plans with audiobooks, the company is "cheating" musicians and songwriters by paying reduced royalties.

"In fact, Spotify ( SPOT ) will pay approximately $150 million less in music royalties during the first year that the new 'bundled' Premium Plans are in effect than what it previously paid in royalties for music-only Premium Plan subscriptions," NMPA General Counsel Danielle Aguirre wrote in a letter to FTC Chair Lina Khan.

The association also is looking for state attorneys general to take up its case under their respective consumer protection laws.

"We categorically reject the NMPA's baseless accusations," a Spotify ( SPOT ) spokesperson said in an email to MT Newswires.

The recent changes to its subscription plans are intended to provide "incredible value and a best-in-class experience" to consumers, the spokesperson said, adding Spotify ( SPOT ) notifies users at least one month in advance of any price increases while offering "easy cancellations as well as multiple plans for users to consider."

Price: 309.36, Change: -6.13, Percent Change: -1.94