West, 40, was reportedly unhappy with the company for a long time, sources told TMZ.
"We're told Kanye has complained the company owes him money -- more than USD 3 million," the sources added.
A month ago West's lawyer also said to have sent a letter to Tidal, saying the company was in breach and the contract was terminated.
Over the next two weeks, the lawyers for both sides tried to resolve the conflict but failed.
The "Gold Digger" hitmaker's decision to split from Tidal predates the release of Jay-Z's new album '4:44' in which he is apparently dissing West.