Rishi Sunak has been accused of “giving in” to Google and Facebook after reports he will let them appeal against plans to make them pay publishers for their news.

The Daily Mail claims the Prime Minister is “personally leading a drive” to water down plans for the new Digital Markets Unit, which is set to be given the power to step in to solve pricing disputes between news outlets and platforms.

The unit has been launched as part of a new regime aimed at better regulating the biggest technology firms, and Mr Sunak previously pledged to put it on a statutory footing.

However, the Mail has claimed he is now set to allow tech giants to launch appeals against the unit’s decisions, making it harder for smaller companies to ensure that social media companies pay fairly for news publishers’ content because of the “expensive and time-consuming process” required.

A “senior Whitehall source” told the Mail Mr Sunak is “instinctively open” to the views of Google and Facebook, adding: “He has made no secret of his admiration for the tech giants, seeing them as a massive driver of employment.”

Speaking to the newspaper, an unnamed tech industry source added: “If the plans are watered down to allow full legal hearings it will be hideously expensive and time-consuming.

“That doesn’t matter to the platforms, which have unlimited funds. The fear is that the DMU will inevitably be less ambitious as a result.”

The claims have prompted concerns from the News Media Association, the trade body for the regional and national press.

NMA chief executive Owen Meredith, pictured, said: “Any change to the Judicial Review standard risks leaving the regulator toothless.”

A Government spokesman told the Mail: ‘A free press is the cornerstone of a thriving democracy. That is why we have put in place clear legal protections to ensure the press can carry out its vital role without fear of prosecution.”