In MP2, the data compression is lesser compared to MP3, which means it is less prone to data loss. However, it results in a much larger file size. MP2 files compress an audio signal at a ration of 6:1 and 8:1, while MP3 files compress 10:1 to 12:1.
The MP3 format is commonly used for Internet applications, file sharing and downloading content online as the file size is quite manageable. MP2 files are much larger, making them unwieldy for the average person to download on a home computer. However, they are still used for radio, broadcasting and transmitting audio files in other corporate settings.