Communications watchdog Ofcom has announced that the spectrum used by RFID tags will be exempt from licences.
In August, Ofcom opened up more spectrum to be used for RFID tags and transmitters. Today's announcement will mean any company can use the technology in a given frequency band as long as they adhere to certain regulations set down by Ofcom which are designed to avoid interference with radio networks.
Ofcom will finalise the regulations on what RFID users must do to dodge interference next month.
According to Ofcom, the decision was taken in the face of increasing use of RFID track and trace technology, particularly in the retail industry.
The regulator believes the decision to leave the RFID spectrum unlicensed will save UK businesses between £100m and £200m over 10 years.