The head of the digital industry's lobby group has warned that a large number of businesses could be damaged by regulations designed to curb the market power of Google and Facebook, as the competition watchdog prepares to release its final report into the digital platforms.

Digital Industry Group Inc (DIGI) managing director Sunita Bose, in her first interview since taking the role in February, said when policymakers refer to digital platforms they usually only think of Google and Facebook. But many companies would not have the resources to comply with the stiffer regulation likely to be imposed on the US-based giants.

DIGI's members include Facebook, Google, Verizon Media, Twitter and Redbubble.

DIGI managing director Sunita Bose. Credit:Edwina Pickles

"We obviously need really clear rules for the internet that protects privacy, safety, the economic and social benefits of technology while also protecting competition and innovation," Ms Bose said.