Spotify Responds To Unauthorized 300TB Archive Of 256 Million Tracks
In a statement to Android Authority's coverage of the incident, reps from Spotify said that "An investigation into unauthorized access identified that a third party scraped public metadata and used illicit tactics to circumvent DRM to access some of the platform's audio files. We are actively investigating the incident." As AA notes, Spotify's statement doesn't confirm the full scale of Anna's Archive data scraping, but Spotify is also in the precarious position of having to deal with virtually the entire music industry in the fallout of this incident.

Premium Spotify subscribers will still enjoy the most seamless access to its entire library, including reasonably high-quality lossless audio files. Spotify's Free tier will likely be more compelling to casual users than sorting through terabytes of torrent files as well, especially since forced shuffle is no longer foisted on listeners. Even higher quality audio is available through services like Tidal or more quality-focused torrents, but there's a reason most people still turn to affordable streaming services like Spotify instead of mass piracy.
It's hard to predict where things will go from here. Anna's Archive is already a self-described shadow library, and it may prove impossible for Spotify or its music industry partners to take any kind of large-scale legal action that could take the torrents or Anna's Archive offline. Android Authority is correct in stating that this move is illegal, regardless of intent—but enforcement is a whole other story.
Once Pandora's Box is open, there's not much that can be done to close it. Realistically, most if not all of this music could already be streamed free or pirated from other sources, anyway. The actual damages done by this move will be difficult to quantify—as always, the greatest way to compete with piracy is to provide a better, more convenient service than what the pirating offers, per the wise words of Valve's Gabe Newell. Spotify's prominence suggests the company is already doing that, though artists have had a lot to say about low payouts on the platform.