Tidal, the streaming platform primarily owned by Jay-Z, is being targeted by a data fraud investigation that was first launched by Norwegian authorities last June, according to Norwegian financial trade Dagens Næringsliv (DN).
The formal investigation has been approved by the Norwegian Supreme Court Appeals Committee, according to DN.
Tidal’s troubles in Norway begun in 2018 when it became embroiled in a scandal over alleged fake streams following an investigation by DN. That scandal led Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime — the local equivalent of the FBI — to launch a probe on Tidal in June 2019.
In its initial investigation, the Scandinavian newspaper said that it obtained access to the company’s hard drive and discovered that listening stats for Beyoncé’s “Lemonade” and Kanye West’s “The Life Of Pablo” had been inflated. Because the platform calculates royalties for all songs based on the play-counts, it is a crucial issue that could also affect royalties paid to other artists. Tidal owns exclusive rights to both albums.
Tidal, which was founded in Oslo, fought back last August by threatening legal action against the government of Norway. The company’s legal reps at law firm Fend have declined to comment on news that the Norwegian Supreme Court has approved a proper fraud investigation, according to Music Business Worldwide.
Reports suggest that the probe could allow prosecutors to seize documents that may shed further light on the platform’s business model and operations.