Leading members of Australia's emerging technology sector have accused the government of misrepresenting the importance of journalism to social media platforms, describing the planned ACCC code of conduct and a potential alternative tax on digital transactions as "terrible ideas" that will harm their global standing.

Facebook's announcement on Tuesday that it could block Australian users from sharing news content as a result of the imposition of new revenue-sharing rules with media companies has led to a marked difference of opinion between those in the media and tech sectors on the legitimacy and efficacy of the plans.