Major Investor Confronts Spotify Over Controversial Government Ads
New York City's chief financial officer has taken direct action against Spotify, demanding explanations about the streaming platform's decision to host recruitment advertisements for Immigration and Customs Enforcement. Comptroller Brad Lander sent a formal letter to Spotify leadership on Thursday expressing serious concerns about advertisements that have sparked significant public backlash.
Substantial Financial Stake Drives Inquiry
The comptroller's office revealed that New York City pension funds hold 691,681 shares of Spotify, representing an investment worth $482,793,542 as of September 30. From what Lander describes as a "fiduciary perspective," he's deeply concerned about the reputational damage these advertisements could cause the company, potentially harming long-term growth prospects.
One version of the controversial advertisement stated: "In too many cities, dangerous illegals walk free as police are forced to stand down. Join ICE and help us catch the worst of the worst, with bonuses up to $50,000 and generous benefits. Apply now." This specific ad was recorded by a TikTok user and subsequently verified by fact-checking organization Snopes.
Growing Public Pressure and Campaigns
The controversy has already triggered organized resistance, with the progressive organization Indivisible launching a "Don't Stream Fascism: Cancel Spotify" campaign. Lander's letter specifically referenced this movement, noting that at least one major national organization is actively encouraging Spotify users to cancel their subscriptions in protest.
Spotify responded to the growing criticism with a statement explaining that "this ad itself is part of a wider campaign from the U.S. government running across multiple platforms, including television, streaming, and online channels." The company emphasized that users can control their ad experience through liking or disliking ads or adjusting their preferences via web browser.
Systemic Discrimination Concerns
Lander's inquiry focuses heavily on whether Spotify properly assessed the ICE advertisements against the company's own policies prohibiting "systemic discrimination and marginalization." The comptroller expressed particular concern about the Trump administration's "mass deportation" agenda, which he believes these recruitment ads directly support.
"The mass deportation effort involves a broadscale hiring effort to make ICE the largest law enforcement agency in American history," Lander stated. He further elaborated on his concerns about systemic civil rights violations, noting a pattern of U.S. citizens and lawful permanent residents being arrested by immigration agents, predominantly people of color.
Lander has personal experience with immigration enforcement operations, having been arrested twice by federal agents in recent months while observing proceedings at the immigration court in lower Manhattan.
Potential Consequences and Next Steps
The comptroller made clear that this initial letter represents just the beginning of engagement between the pension funds and Spotify. If satisfactory answers aren't provided, Lander indicated the city's funds could collaborate with other investors to increase pressure or potentially file a shareholder resolution.
"In some cases where we have been unable to get answers we are looking for, or have a satisfactory engagement, we have divested from, or sold the stock of, particular companies or sectors," Lander explained. However, he emphasized that divestment would only occur after extensive engagement and that their preference is always to use their investor position to reach resolution.
The five New York City pension funds collectively manage over $300 billion in assets, making them the fourth largest public pension plan in the United States. While Lander doesn't have unilateral control over these funds, he serves as trustee for all five and significantly influences their administration.
This isn't the only controversy currently facing Spotify. The company's CEO, Daniel Ek, has also faced criticism for his venture capital firm's 600 million euro investment in Helsing, a European military technology company, which prompted several artists to leave the platform.
