Apple has approved the Spotify App for the iPhone according to the Spotify blog. Spotify customers in the UK, Sweden, France, Spain, Norway and Finland will be able to download Spotify for free from the App Store soon.

This is big news as Spotify competes with the Apple iTunes music offering, but I think Apple needed to also open up to competing offerings sooner or later to stay on a growth path for the iPhone platform.
The free Spotify on the iPhone app will include many of the features users enjoy on the desktop, with the added advantage of letting you listen to your playlists even when you haven’t got a network connection, for instance when you're on a plane or underground.

The Premium Spotify account sells for 9.99 Euro/month (~$14) giving you unlimited access to the spotify music catalog without advertising, plus the ability to stream at a higher bit rate of 320kbps.

Real's Rhaposidy iPhone App is waiting for approval on the iPhone App Store.