I can't speak to the legality, but i've seen countless places (retail shops, restuarants, etc) where they were playing radio over the speakers. Also, i've seen playing over spotify.
As have I, and every one of those are breaking ASCAP/BMI licensing. A lot of stores subscribe to "in-store" networks, and that subscription covers these licensing fees. Using someone's iDevice with their Spotify/whatever app even if it is paid for is NOT a license for public performances. You (royal you) can disagree with it, but it is what it is. If it is usually the smaller places that feel the proper licensing is too expensive, but will be floored when they get popped.