The differential algebra on the fuzzy sphere is constructed by applying
Connes' scheme. The U(1) gauge theory on the fuzzy sphere based on this
differential algebra is defined. The local U(1) gauge transformation on the
fuzzy sphere is identified with the left U(N+1) transformation of the field,
where a field is a bimodule over the quantized algebra \CA_N. The interaction
with a complex scalar field is also given.Comment: LaTeX 26 pages, final version (Dec.1999) accepted in CMP. An extra
term in the gauge action is discusse