Ofcom has confirmed it is working with other European regulators to establish EU-wide rules that would permit use of FM transmitters, such as the iTrip.
A BBC report explains that these are banned in the UK because they can (in theory) interfere with"legal stations".
In face of pressure from the Liberal Democrats, Ofcom has begun to explore how to change the law on this, which dates back to 1949.
They realise that such devices are widely-used in the UK, and that no damage is done to radio reception.
The Liberals questioned the status quo in the Houses of Parliament, asking that action be taken to remedy the law, or that Ofcom justify its continuation.
In face of this, Ofcom admitted it is "working with other European administrations to develop a common set of standards to allow some low-power devices to be sold and used in the UK," the report states.
While the report promises action may take place before the end of the year, it warns that these FM transmitter products would have to be tested for adherence to technical standards review to ensure they didn't pose an interference to other people's radio reception.