The submitted article doesn't mention it but my guess at connecting the dots is that it's related to EU Article 13's stringent requirement of "upload filters"[0]. Yes, Spotify's direct uploading "gave opportunity for small artists to share their talent" -- but that same mechanism also made it too easy to upload copyright infringing content. Since Spotify does not have a machine learning AI copyright filter like Youtu…
The directive [0] says:
"The services covered by this Directive are services, the main or one of the main purposes of which is to store and enable users to upload and share a large amount of copyright-protected content with the purpose of obtaining profit therefrom, either directly or indirectly, by organising it and promoting it in order to attract a larger audience, including by categorising it and using targeted promotion within it."
Considering that Spotify, Apple, Tidal, Pandora, ... get their catalogues from services like CD Baby or Tunecore, they are very likely to meet the condition above.
So my guess the shutdown will be related to some external pressure, from the major labels and/or the partners mentioned above.
[0] http://www.europarl.europa.eu/doceo/document/A-8-2018-0245-A...