One of the UK's three biggest internet service providers has vowed not to co-operate with measures to combat file-sharing set out in the government's controversial digital economy bill, expected to receive royal assent within days.

TalkTalk, with more than 4 million UK internet users, said that "many draconian proposals remain" in the bill, including some that would allow content companies to force internet service providers (ISPs) to block the connections of customers suspected of online copyright infringement.

The Open Rights Group, which campaigns for individual rights online, criticised moves to rush the bill through parliament before the election, saying "measures to allow disconnection of individuals from the internet, for undefined periods of time" and web blocking laws were pushed through "with no real scrutiny and limited debate".

MPs and Lords complained that sites such as Wikileaks or even Google were at risk of being blocked under an order by the secretary of state, because a new clause inserted by the government on Wednesday night provides powers to block sites that "have been, are being or are likely to be used for or in connection with an activity that infringes copyright".

That could spell trouble for Wikileaks, which carries copyrighted material supplied by whistleblowers, such as the US Army video released last week showing the killing of Iraqi civilians.

But photographers and artists celebrated after the government dropped a clause that would have allowed "orphan works" – whose owner cannot be located – to be used commercially at minimal cost. "The UK government wanted to introduce a law to allow anyone to use your photographs commercially, or in ways you might not like, without asking you first. They have failed," said Stop43, a site set up by more than 16,000 members of the photographic, imaging and advertising industries to lobby against the clause.

The bill is certain to pass into law after being rushed through two key stages in two hours on Wednesday night in the House of Commons. It will require ISPs to send letters to anyone accused of infringing copyright by the owner of the copyrighted material; repeated accusations would lead to "temporary suspension" of their internet connection, which could involve either blocking it or slowing it down.

Andrew Heaney, TalkTalk's director of strategy and regulation, said the proposals were "draconian": "This is made all the more appalling by the ability of big music and film companies to influence government and the absence of any proper debate or scrutiny by MPs – only 5% of MPs turned up for the brief debate yesterday and the other important parliamentary stages will be bypassed in the wash-up process," he wrote on the company blog.

But plans for a £6 annual tax on landlines, which had been part of the original Digital Britain report in June 2009 which was then made into legislation, were dropped from the finance bill when the Tories made it clear they would oppose it, potentially derailing the entire bill.

Tory opposition also meant that there will now be no funding drawn from the BBC licence fee for "independently financed news consortiums", which would have made local news to replace regional bulletins on ITV1 — though that might be revived if Labour wins the general election.

Thousands of people used sites such as writetoyourmp.com and 38degrees to complain about the anti-piracy measures in the bill, on the basis that they would criminalise people and did not assume the innocence of the accused – and would be expensive to defend against. Tom Watson, the Labour MP for West Bromwich East and former Cabinet Office minister, rebelled against the bill and voted, with six other Labour rebels including Diane Abbott, against the whip for the first time in his nine-year parliamentary career.

The digital economy bill had substantial backing from the content industries, including record labels and film-makers and distributors, which claim that they are losing £400m a year through online piracy and file-sharing. It emerged when the bill passed through the Lords that a key amendment had been drafted by the BPI, which represents UK major record labels.

The Open Rights Group, which is opposing the measures against file-sharing on the basis that they assume guilt on the part of those who operate internet connections, and that they will discourage hotels, libraries and shops from offering free wireless internet, called the passage of the bill "an utter disgrace".

Jim Killock, its executive director, said: "This is an attack on everyone's right to communicate, work and gain an education. Politicians have shown themselves to be incompetent and completely out of touch with an entire generation's values. There are thousands of activists working with ORG planning to show up at hustings, demand answers from candidates, and who are willing to punish those who voted for this at the ballot box."