Grooveshark fans, we’ve got some bad news: The music subscription service has been removed from the Android Market due to record label complaints.

CNET is reporting Wednesday that the popular music app is absent from the Android Market, with Google telling the publication: “We remove apps from Android Market that violate our terms of service.” We’ve reached out to Grooveshark for comment. As of now, there’s no word as to whether the app will be remotely removed from users’ smartphones.

Back in August, the app was also removed from the Apple App Store amid record label complaints. Unlike services like Rdio, MOG, Spotify and Rhapsody, music is added to the service by its users, which means that copyright violations are much more likely.

We can’t help but think, at this juncture, of Google’s own proposed music service, which has been all over the web lately. This service would act as a locker for users’ music, allowing them to listen to jams across devices, among other functions.

Seeing how Google has allegedly yet to get all the licenses it needs from the music labels, it doesn’t seem that far-fetched that the company would pull an app that raises the labels’ ire at this point in time.

Update: We have received a statement from Grooveshark:

“We were surprised by Google’s removal of the Grooveshark App from the Android Market Place, and are still unclear as to what policies have now been violated. We have always had a positive relationship with Google as evidenced by the Grooveshark App’s active and featured presence in the Android Marketplace for the past one and a half years.

We respect copyright law and the rights of content owners, generating positive results and revenues for the artists and labels that we have agreements with. Regarding the content for which we do not have agreements in place yet, we abide by, and pay royalties, according to the rules outlined in the DMCA, the same legal act that governs Google and YouTube’s activities.

We are eagerly looking to enter into agreements with all labels and content owners, so that we can work together to the benefit of all parties. To be effective, these agreements, however, must be struck directly with the respected content owners in the boardroom not the courtroom.”

Image courtesy of Flickr, thecrazyfilmgirl