Yorke says that Atoms for Peace are "standing up" for fellow musicians by removing their work, including their debut album AMOK which was released earlier this year, from Spotify.
He posted: "Make no mistake new artists you discover on #Spotify will not get paid. meanwhile shareholders will shortly being rolling in it. Simples."
Nigel Godrich has tweeted: "Anyway. Here's one. We're off of spotify.. Can't do that no more man. Small meaningless rebellion. Someone gotta say something. It's bad for new music."
However, Smiths and Blur producer Stephen Street has said that it's a "bit rich" for Yorke to have a go at Spotify, after Radiohead made their 2007 album In Rainbows available to download for free.
"bit rich coming from Thom Yorker (sic) that Spotify doesn't work for new artists,” Street tweeted. “It's exactly what I said when Radiohead made their album available for free/pay what you want a few years back.
"Suits superstars with 10 years of EMI investment behind them. It didn't help new upcoming artists at all. Gave the wrong message that music had no value. It's bitten you on the arse Thom!"