The world's most powerful tech companies face tougher regulation and oversight of their practices under a raft of "groundbreaking" proposals revealed in a landmark report on Friday.

The final report of the Australian Competition and Consumer Commission's digital platforms inquiry — hotly anticipated by media companies, the tech sector and global regulators — has called for sweeping changes to protect consumer data, address the market dominance of Facebook and Google, and support public interest journalism.

The Morrison government labelled the world-first findings "groundbreaking" and said Facebook and Google needed to be held to account for their activities.

"Make no mistake, these companies are among the most powerful and valuable in the world and they need to be held to account and their activities need to be more transparent," Treasurer Josh Frydenberg said on Friday.