The Spanish track was remixed featuring pop superstar Justin Bieber and now has combined global streams in excess of 4.6 billion plays across all streaming platforms.
Commenting on the achievement, Luis Fonsi said: ''Streaming is a connector for audiences worldwide and it has helped my music reach every corner of the planet. It is truly an honour that 'Despacito' is now the most streamed song in history.''
For Bieber, 23, it means he has surpassed his own record for 'Sorry', which with its associated remixes, which have accumulated 4.38 billion plays as of now.
Sir Lucian Grainge, Chairman & CEO, Universal Music Group, said: ''Luis Fonsi already had the undisputed, biggest song of the year - and now he's setting even bigger records. Streaming has opened up the possibility of a song with a different beat, from a different culture and in a different language to become a juggernaut of success around the world. My congratulations to Luis Fonsi, Daddy Yankee and Justin Bieber, as well as everyone at Universal Music Latin Entertainment, Republic Records and Def Jam, on this tremendous accomplishment.''
Jesús Lopez, Chairman & CEO of Universal Music Latin America & Iberian Peninsula, added: ''Streaming has democratized music consumption, it has made Latin music increasingly relevant on the charts and it has amplified our songs and videos to a world stage.
'''Despacito' has broken every record thanks to Luis Fonsi's talent and creativity, which have positioned him as a pillar of Latin music for the past 20 years.
''I also congratulate Erika Ender, Daddy Yankee and Justin Bieber for their valuable contributions, as well as the different teams involved in the success of this song.''
From 'Happy' to 'Banana Pancakes', these are soaked in positivity.