Their streaming is not lossless. There are also two different quality levels for streaming that you can choose in settings, ensure you've selected high quality,

Their streaming is not lossless. There are also two different quality levels for streaming that you can choose in settings, ensure you've selected high quality, I'm not sure what the default is. Upon saying that, even with my Sennheiser HD 202s and Macbook built-in audio I can tell the difference between Spotify and lossless FLAC. My Australian internet is so bad that I probably couldn't even stream FLAC anyway.