The ACCC also proposes changes to the Privacy Act to force digital platforms to be clearer with their terms and conditions and to allow Australians to "opt-in" to targeted advertising. The recommendations form part of a world-first inquiry and are considered among the strongest moves globally to manage the rising influence of digital platforms after a rocky year for major tech companies. The competition watchdog has recommended an ombudsman to handle Facebook and Google-related complaints. Credit:Reuters Facebook, in particular, has been under increased scrutiny worldwide after a series of scandals around users' data and a proliferation of fake news on its platform. Australia has close links to regulators in the US, Europe and the UK, and ACCC chair Rod Sims is calling on regulators in other markets to follow his lead.

"We meet informally very often and these issues in different ways have come up in those discussions ... We know they are interested, we know they want to engage, I am hoping what we have written captures their imagination and interest and I am pretty sure it will," he said. Loading "It can be much more powerful if other regulators and other governments come on board." Mr Sims said he had a regular dialogue with his peers in the US and was travelling to the country in early 2019 to discuss his findings. "We have a lot to do with our American counterparts, a hell of a lot. I think we will be able to [get a co-ordinated response]." Some suggestions made in the report were specifically to help news publishers, including a proposal to make personal subscriptions to some news publications tax deductible and the start of a separate review of the media industry and regulations on production and the delivery of content.

A mismatch between the standards placed on news publishers and broadcasters and the comparatively low level of requirements for digital platforms has been a source of complaint from media businesses. A Nine spokesman said the broadcaster was pleased with the report but was still reviewing the details. "The report suggests some promising and real solutions that are encouraging," he said. Seven West Media chief executive Tim Worner said in a statement the report recognised the "substantial market power of Google and Facebook and the ways in which this has harmed the local media and advertising industry". “While the preliminary report is focused on news and journalistic content, we note that Google and Facebook also have a massive impact on producers of all Australian content and we hope this preliminary report is a first step towards taking real action to address the effect they have on all Australian businesses and consumers," Mr Worner said.

News Corp Australasia executive chairman Michael Miller said the report showed how the digital giants had become "unavoidable business partners". News Corp has led the charge against the platforms, earlier suggesting the creation of an algorithm review board to keep the tech giants in check. "As global campaigners against the dominance and lack of transparency of the digital platforms, we are encouraged by the ACCC preliminary recommendation that Google and Facebook's strong market position justifies a greater level of regulatory oversight." Within the report, the competition watchdog revealed five ongoing investigations into the digital giants over potential misuse of market power and contraventions of consumer law. There could also be a future requirement for digital giants to tell the regulator in advance about any acquisitions, and for consumers to be offered a choice over the internet browser and search engine on their devices. Facebook and Google are expected to respond aggressively to the preliminary report, with legal experts reviewing the suggestions, as it's considered an early sign of a push for a co-ordinated global retaliation against the digital giants.