As of now you accept that everything on your phone gets collected including your contacts - and it can be shared with others!
In other words: Spotify wants you to accept that they can spy on you in every way imaginable.
Local regulations may demand that you ask your friends and contacts if this is OK since you will be sharing info about them too, but Spotify could not care less. That is your problem!
Music streaming market leader Spotify has decided that it wants to know a lot more about you. It wants to be able to access the sensor information on your phone so it can determine whether you’re walking, running or standing still. It wants to know your GPS coordinates, grab photos from your phone and look through your contacts too. And it may share that information with its partners, so a whole load of companies could know exactly where you are and what you’re up to.
So they will be following you 24/7 and tell everybody what you do at least if someone is willing to pay for it.
These terms are shocking and a pure speculation in people not reading them.
Time to throw out spotify - and I do hereby declare: Everybody that has me as a contact are not allowed to share those data !
It is time to cancel all your connections with spotify - this is not serious business.
It can be convincingly argued that it is much better to violate digital rights than being part of a service that violates your human right to privacy.
Digital rights are not among the Human rights - Privacy is!
More here and here