Apple has approved the Spotify music streaming application for the iPhone and iPod touch.

Swedish music streaming service Spotify submitted its application for approval to Apple's App Store in July, a closely watched move since a free music download service for the iPhone and iPod touch could impact upon iTunes' paid-for downloads.

Apple, which has never revealed its policy for accepting applications, has previously denied applications that it says duplicate existing phone functionality. But the ad-supported Spotify has been given the green light and will appear on the App Store shortly.

However, while Spotify will be a free download for owners of Apple's handsets, users will be required to have a subscription to Spotify's premium subscription service, which is £10 per month.

"The current status as of right now is it's been approved and we hope to add the app to the more than 65,000 apps on the app store very soon," said an Apple spokesperson. "We've been in constant communication working with the developer and have already notified Spotify that the app will be in the app store very soon."

While controversy has surrounded the approval process since the App Store first launched, the issue is particularly important now because the US Federal Communications Commission is investigating the mobile-phone industry. Earlier this month, the agency asked Google, Apple and AT&T to answer questions about how and why the Google Voice application was recently denied by Apple for the iPhone. In its response last week, Apple said it hasn't yet rejected the application but has concerns about it because it alters the iPhone's user experience by replacing the mobile-phone functionality with a new interface.

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