The Competition and Markets Authority has launched an investigation into whether Facebook holds an unfair advantage in areas such as online classified ads and online dating, in the way it gathers and uses data.

Facebook collects data when businesses advertise to its users and via its single sign-on option which enables people to sign into other websites using their Facebook log-in details.

"We will be working closely with the European Commission as we each investigate these issues, as well as continuing our coordination with other agencies to tackle these global issues," CMA Chief Executive Andrea Coscelli said.

(Reporting by Kate Holton; editing by Sarah Young)