Spotify has confirmed the discontinuation of its service in Uruguay.
This decision follows the approval of an amendment to Uruguay's copyright law by the country's Parliament.
The amendment, titled "Rendición de Cuentas," was proposed by the Uruguayan Society of Performers (SUDEI).
Spotify will begin phasing out its service in Uruguay starting January 1, 2024, with operations ceasing entirely by February.
It introduces a requirement for "equitable remuneration" for artists regarding their recorded material.
The bill also considers "social networks and the Internet" as formats for which performers are entitled to financial remuneration when their songs are reproduced.
Spotify had initially threatened to end its service when the bill was first introduced, citing a lack of clarity and an additional mandatory payment for music services.
In a letter to Uruguay's Minister of Education, Spotify expressed concerns that the proposed changes could make its business in Uruguay unfeasible and lead to paying double the amount of royalties.
Spotify's official statement mentioned the lack of clarity on changes to music copyright laws in the 2023 Rendición de Cuentas law.