An Australian government review has suggested implementing a series of tough measures to curb the influence of U.S. tech giants.

Establishing a watchdog dedicated to regulating how Google and Facebook publish news, and preventing Google Chrome from being installed as the go-to browser on Australian devices, were among recommendations published by the Australian Competition and Consumer Commission (ACCC) on Monday.

The ACCC expressed concern in its report that tech giants were damaging Australia's traditional media outlets, as well as creating "filter bubbles" and giving credibility to less reliable news sources.

"Filter bubble" is a term referring to the intellectual isolation arising from personalised news feeds which are generated by algorithms that guess which information a user wants to see based on their personal data.

"Without adequate information and with limited choice, consumers are unable to make informed decisions, which can both harm consumers and impede competition," the report said.

The ACCC report included a proposal that would prevent Chrome, Google's internet browser, from being installed as a default browser on mobile devices, computers and tablets. It also proposed banning Google from being installed as the default search engine on other internet browsers such as Microsoft's Internet Explorer.