Jul 01, 2016 05:25 AM EDT

Apple To Acquire Jay Z's Tidal Music Service After Rejecting Spotify Update?

There are claims that Apple is in talks to acquire Tidal, the music service run by rap mogul Jay Z. This comes after the tech giant rejected the new version of the Spotify app for iOS.

The Wall Street Journal reported that Apple is toying with the idea of bringing in Tidal to boost its Apple Music service. This is believed to be due to Tidal's strong ties to popular artists such as Kanye West, Madonna, Rihanna and Jay Z's wife Beyoncé.

According to people familiar with the matter, discussions are still going on. However, there is a possibility that the talks may not result in a deal. The terms have not been confirmed as well.

A Tidal spokesperson denied the allegations, saying that the music streaming service has not held talks with Apple.

Jay Z bought Tidal from Swedish company Aspiro last Mar. 2015 for $56 million. The music streaming service charges $20 a month for a high-fidelity version of its 40 million-song catalog.

It also has a $10 per month version for standard quality sound. Tidal has claimed 4.2 million paying subscribers.

Meanwhile, the news comes after Spotify has slammed Apple for blocking a new version of its iPhone app. Recode reported that the music streaming service claimed that Apple is "ausing grave harm to Spotify and its customers" with its rejection of an update to the iOS app.

Apparently, Apple turned down the update due to "business model rules." The company has also demanded Spotify to use their billing system if the streaming service wants to use the app to get new customers and sell subscriptions.

"This latest episode raises serious concerns under both U.S. and EU competition law," Spotify general counsel Horacio Gutierrez wrote in a letter. "It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify... We cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors."

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