Verizon Wireless Pays $1.25 Million to Settle FCC Complaint

Verizon Wireless was fined $1.25 million on Tuesday over allegations that it restricted customer access to tethering apps. The FCC found that Verizon was wrong to block access to such apps, which customers were using to get around Verizon's old $30 monthly mobile hotspot charge.

The case dates back to June 2011 when consumer group Free Press filed a complaint with the FCC against Verizon Wireless for allegedly requesting that Google block tethering apps in the Android Market. The FCC said that by blocking these applications, Verizon has violated the open access conditions that were placed on the block of spectrum the company is using to build its 4G LTE network.

"Today's action demonstrates that compliance with FCC obligations is not optional," FCC Chairman Julius Genachowski said in a statement. "The open device and application obligations were core conditions when Verizon purchased the C-block spectrum."

"We have made clear to our customers that when using our services, they can go where they want and do what they want on the Internet, using the lawful applications and devices of their choice," Verizon said in a statement. "Verizon Wireless has always allowed its customers to use the lawful applications of their choice on its networks, and it did not block its customers from using third-party tethering applications. This consent decree puts behind us concerns related to an employee's communication with an app store operator about tethering applications, and allows us to focus on serving our customers."

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