In today's CMU Daily: Apple and Spotify issue statements that sound like an argument between a parent and a teenager. One says the other is ungrateful, the other says the rules aren’t fair. Either way, it still looks like Apple might have to cough up €500 million to the EU

One Liners: WMG signs Nora Fatehi; Dua Lipa becomes YSL ambassador; TikTok, Virgin Radio and Scala Radio departures; FKP Scorpio promotions; Connect Music Festival cancellation; Abbey Road Equalise returns; Chase & Status win producer BRIT; new music from Paco and Pepe de Lucía, and AG Cook

Also today: Wiley’s MBE revoked, the MU says blocking Kneecap’s MEGS funding might contravene the Human Rights Act, and the American Federation Of Musicians’ deal with Hollywood over streaming and AI

Plus: Setlist looks at the music business in 2024

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Spotify vs Apple name-calling kicks off again after EU mega-fine rumours

The war of words between Apple and Spotify continued last week. Apple reckons that Spotify is ungrateful. Spotify says it just wants a level playing field. Both companies issued statements in the ongoing battle over the Apple Tax following reports that EU competition regulators are planning on fining Apple €500 million as a result of an investigation instigated by a complaint made by Spotify back in 2019.

"We’re happy to support the success of all developers - including Spotify, which is the largest music streaming app in the world", Apple said in its statement. "Spotify pays Apple nothing for the services that have helped them build, update and share their app with Apple users in 160 countries spanning the globe. Fundamentally, their complaint is about trying to get limitless access to all of Apple’s tools without paying anything for the value Apple provides".

Not so, said Spotify in its response. Its success, it said, "has happened despite Apple’s best efforts to gain an artificial advantage by favouring their own music service at every turn while placing roadblocks and imposing unfair restrictions on ours. This is not a level playing field. We support the European Commission and trust that they will take action soon to create a fair ecosystem for everyone involved".

Spotify and many other app developers object to Apple's App Store rules regarding in-app payments. Under those rules many app developers are obliged to take in-app payments via Apple's commission-charging transactions system and are not allowed to sign-post alternative payment options outside of the app.

In its statement last week, Spotify explained that means "Apple controls Spotify’s access to its own customers and gives Spotify one of two untenable options: We either have to deliver a poor user experience where we can’t directly communicate how to buy or subscribe to Spotify on iPhones or we have to accept a 30% cost disadvantage against our biggest competitor".

Apple's rules have been the subject of litigation and regulator intervention in multiple counties, with Spotify and other app developers accusing the tech giant of breaching competition law. The EU investigation ultimately focused specifically on the rule prohibiting Spotify from sign-posting other payment options. Reports suggest regulators agree with Spotify that Apple has violated EU competition rules, hence the incoming mega-fine.

Elsewhere in its statement in response to those reports, Apple stressed just how much more successful Spotify is in terms of subscriber numbers compared to its own music streaming service, especially in Europe. It also revealed that the Spotify app has been downloaded and updated more than 119 billion times across Apple devices. Plus Spotify makes use of thousands of Apple's APIs and has been supported by Apple's engineers as it has evolved its app.

So, basically, Spotify should thank Apple for all of its support and shut the fuck up. Spotify could point out that, despite its market dominance, it remains loss-making and is currently undertaking significant downsizing in its bid to become a profitable business. Or, assuming it's not too keen on issuing a self-diss to counter Apple's arguments, it could also say that plenty of less successful music apps have also faced the challenges posed by Apple's rules.

Certainly EU regulators will be keen to stress that, although kickstarted by a complaint from Spotify, their investigation is more wide-ranging than that - they don't see their role as simply refereeing an Apple v Spotify bust up. But both Spotify and European officials seem likely to be on the receiving end of plenty more Apple rage when the outcome of the EU investigation is formally announced.

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Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

One Liners: Dua Lipa, Chase & Status, AG Cook + more

DEALS

Warner Music has signed Nora Fatehi to a worldwide record deal. “I’ve enjoyed great success in my career so far, but this deal is a significant step forward in my musical journey, a new chapter in my international career”, she says. “I want to use my diverse cultural background to create music and dance that brings everyone together! I’m excited to work with Warner Music to leverage their experience and expertise to help me fulfil this goal”.

APPOINTMENTS

Dua Lipa has been announced as Global Makeup Ambassador for YSL Beauty. “For me, fragrances and makeup are another form of self-expression, a way to explore my playfulness, my creativity and my individuality”, she says. “I am THRILLED to be on this journey as part of the YSL Beauty family”.

TikTok’s Global Head Of Music Operations Paul Hourican is departing the company. “After four and a half amazing years and with a lifetime’s worth of memories and achievements in the bag, I have made the decision to move on from TikTok and I’m excited about what the future holds”, he said in a post on LinkedIn.

Graham Norton has announced that he is leaving his weekend afternoon show on Virgin Radio, having moved to the commercial station from BBC Radio 2 back in 2021. His slot will be temporarily filled by Angela Scanlon until a permanent replacement is announced. "His are big boots to fill and we'll be announcing the owner of those feet in the weeks to come”, says Content Director Mike Cass.

Mark Forrest, Mark Kermode, Luci Holland, Richard Allinson and Sam Hughes are set to leave Scala Radio, as the Bauer-owned classical station goes presenter-free between 2pm and 6pm on weekdays. “At Scala Radio we’re continually looking at how we can review and update our offering to provide something new for our audiences and with these new programmes and curations, we’re really pleased to be offering even more music to accompany them across the day”, says Content Director Nick Pitts, putting a positive spin on what some might think is a cost-cutting measure.

Live music company FKP Scorpio has promoted Rauha Kyyrö and Rense van Kessel to become co-Presidents Of Touring & Artist Development. “Rauha and Rense’s work has been a vital part of our success for several years now”, say FKP bosses Folkert Koopmans and Stephan Thanscheidt. “Their new roles as Presidents [Of] Touring & Artist Development are the next step in strengthening our natural growth and diverse portfolio, with the aim of being the best partner for artists and music fans alike”.

LIVE BUSINESS

The Connect Music Festival in Edinburgh has announced that it is cancelling its 2024 edition. Organisers say that they have "decided to take a break” in order “to take the time to build the next edition of the festival”.

INDUSTRY EVENTS

The Abbey Road Equalise festival will return on 4-8 Mar to coincide with International Women’s Day. It will feature workshops, masterclasses and panel talks featuring leading female figures from across the music industry. More information here.

AWARDS

The BRIT Awards has announced Chase & Status as winners of this year’s Producer Of The Year award. Set to perform at the ceremony on 2 Mar, the duo say, "We couldn't be more proud - we've been flying the flag for British music now for a long time, we're super proud of all the music that has come out of the UK. As producers, and as a creative duo, I think we are probably in one of the best places we've been”.

RELEASES

BMG is to release an album of previously unreleased recordings by Paco and Pepe de Lucía. ‘Pepito y Paquito’ will be released in May to mark the tenth anniversary of Paco’s death. Originally recorded to cassette, the recordings have been enhanced using AI. “I never thought these recordings would ever see the light of day, but thanks to the tireless work of the team that has been part of this process, the tapes have finally been restored and are ready to be released”, says Pepe.

AG Cook will release new album ‘Britpop’ on 10 May. His new single, also called ‘Britpop’, is out now.

MU says blocking of Kneecap funding may breach Human Rights Act

The Musicians' Union has written to UK Business Secretary Kemi Badenoch to express concern about her decision to block Music Export Growth Scheme funding for Belfast rap group Kneecap because of the politics of their musical output. The minister's intervention could be a breach of the free speech provisions in the Human Rights Act, the union warns, and it sets "a dangerous precedent for the creative output of musicians".

"Kneecap’s music clearly engages people and any move to block their development as artists may serve to alienate the communities, within the UK, that they speak to or for", MU General Secretary Naomi Pohl writes in her letter to Badenoch.

Alluding to the hypocrisy of the minister's intervention, she adds, "you have repeatedly and very publicly emphasised the importance of freedom of expression, freedom of association and freedom of speech - all values that the MU and our membership support. We must uphold these values even when someone’s views or political beliefs don’t align with our own".

MEGS is a government-funded programme to support independent artists and labels pursuing opportunities in new markets. The scheme is managed by record industry trade group BPI and grants are awarded by a panel of industry experts, although their decisions need to be approved by Badenoch's department.

It emerged earlier this month that the MEGS panel had approved a grant application from Kneecap but it had been blocked by Badenoch, seemingly because of the political messaging of Kneecap's music, the group being very vocal about their support for a united Ireland. A spokesperson for the minister said they did not want to hand taxpayers' money "to people that oppose the United Kingdom itself".

Kneecap themselves have begun legal proceedings against Badenoch and her department, while politicians in Northern Ireland have said that blocking the grant on political grounds might breach the Good Friday Agreement, which was signed as part of the Northern Ireland peace process in 1998.

Citing other legal concerns, Pohl's letter states, "your department’s intervention may be in breach of article ten of the Human Rights Act which protects the right to hold opinions and to express them freely without government interference. This right is fundamental to our democracy, and I urge you to reconsider your decision".

Commenting on the letter, the MU's Acting Regional Organiser for Scotland and Northern Ireland, Sam Dunkley, says, “It is deeply concerning that a Secretary Of State should see fit to step in and block a grant which had been decided by an expert panel who had the authority to make the decision. It shouldn’t be for the government to decide what art is worthy of funding, what those granted funding should think, or what the subject of their art should be".

Pohl's letter also notes other concerns regarding moves in the UK that could be negatively impacting on the freedom of expression of musicians, including the recent revision to guidelines from Arts Council England and the ongoing criticism of police for using the creative output of drill artists as evidence in criminal cases.

"We have seen recent remarks from Arts Council England along similar lines and I am writing to them today as well", she writes. "We have also recently met with the Metropolitan Police to discuss discriminatory actions towards artists in drill music and other black music genres”.

"In the view of the MU", she then concludes, "your department’s intervention in the MEGS decision making process on this occasion was a blatant form of censorship and has overstepped the mark. I would welcome the opportunity to meet with you to discuss this".

US labor union American Federation Of Musicians reaches tentative agreement with Hollywood over streaming and AI

The American Federation Of Musicians has reached a tentative agreement with the Hollywood studios over the contracts that cover music made for films and TV shows. Streaming income and concerns over AI were high on the agenda when the union began talks with the Alliance Of Motion Picture And Television Producers last month.

“This agreement is a major win for musicians who have long been under-compensated for their work in the digital age", AFM's International President Tino Gagliardi said on Friday.

“We have secured historic breakthroughs in streaming residuals, established critical guardrails against the misuse of AI, gained meaningful wage increases, and made other important improvements. This agreement represents a watershed moment for the artists who create the soundtracks for countless film and TV productions".

Last year, disputes over streaming income and AI resulted in the Hollywood strikes called by unions representing writers and actors. As its negotiations began, AFM said it had collaborated with and learned from the work of organisations like the Writers Guild Of America and actors union SAG-AFTRA.

In his new statement, Gagliardi added, “We were not alone in this negotiation, and we were proud to have the full backing of fellow unions: SAG-AFTRA, Writers Guild Of America, IATSE and the Teamsters. It was yet another powerful reminder that when we have solidarity in the labour movement, we can achieve great things".

When talking about the key issues faced by his members last month, Gagliardi said musicians were not against the use of AI in the creative industries, but "we need consent, we need compensation, and we need credit". On streaming, he added, “the business model has changed for all of us. Musicians are making 75% less now than they were before the streaming model. We need to have a residual on streaming".

The specifics of what has now been agreed between AFM and the studios is yet to be revealed, with the revised contract remaining confidential until it is approved for a ratification vote by the relevant AFM members.

Setlist Podcast: The music business in 2024

In this special edition of Setlist, Andy Malt and Chris Cooke dive into topics covered in CMU's latest series of masterclasses, which look at the music business in 2024. We talk through key trends in streaming, copyright, AI and more.

🎧 Click here to listen - or search for 'Setlist' wherever you normally listen

Wiley's MBE revoked due to antisemitic comments

The UK government announced on Friday that the MBE awarded to grime pioneer Wiley in 2018 has been revoked for “bringing the honours system into disrepute”.

The Honours Forfeiture Committee began reviewing the rapper's honour following a complaint by the Campaign Against Antisemitism in 2020. Wiley made a number of antisemitic statements during a social media meltdown in July of that year.

“Antisemites like Wiley must understand that we will work tirelessly to hold them to account", says Stephen Silverman, Director Of Investigations And Enforcement at the Campaign Against Antisemitism. "For four years, we have worked to ensure that Wiley faces ruinous consequences for his unhinged antisemitic tirade, for which he has shown no remorse. Today’s decision is a vindication of that effort".

“We commend the Honours Forfeiture Committee for using its powers to make clear that anti-Jewish racists cannot be role models in our society and will be stripped of their honours", he adds. "Receiving an honour is not a one-time thing: it carries an ongoing responsibility to set an example to others".

Wiley - real name Richard Cowie - was included in the UK's New Year's Honours List in 2018, receiving the Member Of The Most Excellent Order Of The British Empire award for his services to music. At the time he said “it feels like the school grade I wanted and didn’t get but now I’m finally there".

In July 2020, Wiley was widely condemned for a long series of social media posts in which he made a number of antisemitic statements. He subsequently apologised in an interview with Sky News.

His social media rant had started with criticism of the music industry, and was possibly in part prompted by a falling out with his then manager John Wolff, who is Jewish. Wolff initially expressed concern about his client as the social media tirade was under way, but later confirmed he had cut ties with the rapper. Wiley responded in an Instagram post stating, “I cut ties with you, you fool. That’s why we’re here”.

In the Sky News interview, Wiley said “my comments should not have been directed to all jews or Jewish people. I want to apologise for generalising, and I want to apologise for comments that were looked at as antisemitic”.

However, he was subsequently criticised for failing to formally retract many of the more problematic things he had tweeted.

The following year more antisemitic content appeared on a Twitter account set up under his name. He was also charged with assault and burglary over an alleged break-in that took place that year. He pleaded guilty to assault and criminal damage last June.

The Campaign Against Antisemitism has also pursued legal proceedings against the rapper, which in part delayed the process of reviewing and revoking his MBE.

There are various reasons why the Honours Forfeiture Committee might revoke an honour, including being found guilty of a criminal offence, being censured by or disbarred from a professional body, or more generally bringing the honours system into disrepute.

Of the three people who had honours revoked on Friday, two fell in that more general category. Alongside Wiley, it was announced that former Post Office boss Paula Vennells has lost her CBE. She played a key role in the Post Office's Horizon scandal that is widely seen as one of the greatest miscarriages of justice in UK history, and which came to much wider attention recently thanks to an ITV dramatisation.