Dutch regulators ordered T-Mobile Netherlands to shut down its zero-rated music streaming offer, ruling that the service violates net neutrality rules in the country.

T-Mobile launched Music Freedom in October, allowing customers to stream music on mobile devices without impacting data plans.

However, the Dutch Consumer and Markets (ACM) regulator said shortly afterwards it would investigate the policy, following a new bill passed in the Dutch Senate forbidding zero-rating.

Two months on, the ACM has now threatened the operator with fines of €50,000 per day, up to a maximum of €500,000, if it does not withdraw the offer within 20 days of the ruling.

In a statement, T-Mobile said “the decision comes as no surprise” but confirmed it planned to appeal.

The operator argues that the zero-rated offer does not contravene Europe-wide net neutrality regulation, which it says should apply directly rather than a Dutch intermediary law.

“T-Mobile continues to believe that there is no question of violation because zero-rating is permitted according to EU rules under certain conditions,” it added.