T-Mobile's Free Streaming Music Service Banned

The Dutch Consumer and Markets regulator (AFM) on Friday ordered T-Mobile to stop offering a streaming music product which did not count toward customers' data usage.Read more: Top 5 Apps for 2016 You Should Download on Your iPhone

The AFM said the practice, often called "zero rating" is a violation of Dutch net neutrality rules, because it puts rival services such as Spotify at a competitive disadvantage.Read more: Top 5 Moto Phones Under Rs 16,000 in 2016

Deutsche Telekom subsidiary T-Mobile Netherlands, which had introduced the product on Oct. 10, must stop offering it or face penalty of 50,000 euros ($52,000) per day, the AFM said.Read more: Leak Shows Apple to Release 3 iPhones in 2017; Here's All About the 'Ferrari' iPhone

The Dutch net neutrality law unambiguously forbids the practice, but European Union rules are less clear.

T-Mobile could not immediately be reached for a reaction. The AFM said it expects the company may launch a legal challenge to the decision.