This seems kinda analogous to Amazon Basics pulling the rug out from under successful third parties on their platform.

Spotify has provided a platform for artists to release music on, and implicitly promised that they will curate that music in playlists etc to promote the artists. But then they pull the rug out from under them and just push in house stuff instead, denying royalties to the artists that probably only joined the platform because Spotify /weren't/ doing stuff like this.

People saying OP is just upset that "non famous artists" are being recommended or that these artists aren't really "fake" are missing the point - these are artists created /by Spotify/ being promoted /instead of/ artists that Spotify would actually have to pay royalties to. There's clearly some perverse incentives here.