AUSTIN, Texas — Ken Paxton has launched an investigation into major music streaming platforms to determine whether they engaged in undisclosed promotional practices that may violate state law, his office announced.
The probe targets platforms including Amazon, Apple, Pandora, Spotify, and YouTube. Investigators will examine whether these services artificially promoted certain songs, artists or content through undisclosed payments or incentives.
The practice under scrutiny, known as payola, involves receiving compensation in exchange for preferential promotion without disclosure. The practice was common in early radio broadcasting and was later banned under federal law.
The attorney general’s office said the investigation will focus on whether streaming platforms entered into undisclosed financial arrangements with record labels, promoters or third parties to influence playlist placements, recommendation algorithms or content visibility.
Paxton said the inquiry aims to determine whether such practices distort competition and mislead consumers. He added that the investigation seeks to ensure transparency in how music is recommended and promoted on digital platforms.
Streaming services have become a primary channel for music distribution, raising concerns among regulators about the potential for hidden promotional agreements that could affect what users hear.
