Targeted advertising systems that track the online activities of web users and then deliver relevant adverts, such as Phorm, are facing investigation by the All Party Parliamentary Communications Group (apComms).
According to apComms, the investigation is part of a larger inquiry into internet traffic and the role of the government in regulating ISPs.
Phorm said it had no problems with the investigation and that it "welcomes the decision by the All-Party Parliamentary Group on Communication to examine internet traffic".
"We will be happy to explain the enormous potential of Phorm's internet advertising service with its industry leading privacy standards. We shall be in touch with John Robertson, MP and Derek Wyatt, MP in due course to make arrangements to offer our expert opinion."
The investigation follows an infringement proceeding which the European Commission has started against the UK over Phorm's system. In a further blow for the targeted advertising service, Wikipedia and Amazon both agreed to block Phorm from tracking its user's online activities after a plea from the Open Rights Group.
See also: Virgin Media denies ditching Phorm