The report also calls for reforms to level the legal playing field between traditional media companies,whose business models have been under assault in the internet era,and the powerful tech giants.

'Public good'

The government has backed the need for"harmonised"laws and regulations. Mr Frydenberg said"ensuring a viable media landscape because news and journalism is a public good".

"Content generated by journalists and owned by media companies is being displayed on social media and search engines,often without a negotiated agreement covering how data and content is monetised and shared,"he said.

Codes of conduct governing the relationship between the digital platforms and media business would be overseen by the Australian Communications and Media Authority.

The codes would seek to ensure the platforms were treading media companies"fairly,reasonably and transparently"in their dealings.

In other provisions intended to bolster journalism,the ACCC recommended"stable and adequate"funding for the ABC and SBS,grants for local journalism,and tax incentives to encourage philanthropic support for journalism.

In order to improve protection for user data,the ACCC says the Privacy Act should be updated to enable people to have better control over their information.

The report also recommends a toughening of laws governing company mergers to protect competition.

The watchdog also wants to see a prohibition on unfair contract terms enshrined into legislation.

'Unintended consequences'

DIGI,the industry body representing Google,Facebook and other tech companies operating in Australia,called on the government to assess the ACCC's recommendations against an"innovation test",warning about impacts on Australia's"global standing as a place to invest in technology".

DIGI managing director Sunita Bose said the sector was closely examining the recommendations to"ensure they don't bring unintended consequences to all digital businesses and the choice of digital products available to Australian consumers".

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

Nine chief executive Hugh Marks welcomed the ACCC's findings.

"We'd like to congratulate the ACCC and the government for the initiative they've taken and for the comprehensive nature of the response. We're enthused by what we've seen so far,"he said.

Notably,the report does not call for the creation of new regulatory authorities — instead opting for empowering existing bodies — and stops short of recommending the break-up of the companies to kill off their market dominance.

Having backed the"overriding conclusion"of a need for reform,the government will now set about devising its response to the specific recommendations,with a taskforce to consult on the complex and significant changes. The final response will be outlined by the end of the year.