Yes, the lossless audio file you're using is probably compressed — that's completely fine for this reason.

Earlier this year, Spotify announced a ‘HiFi’ upgrade tier for its streaming service that provides lossless audio, promising music free of compression artifacts. Although it’s still not available as ...

CD-quality music is still the benchmark for decent audio; it’s not quite hi-res, but it’s noticeably better than the lossy, compressed music found on Spotify and your old MP3 library. But actually ...