When Verizon bought a chunk of the 700 MHz C-Block spectrum, it agreed to a stipulation that would let customers freely use the devices and applications of their choosing. When the carrier blocked its customers from using tethering apps, it ran afoul of these “open network” rules set by the FCC. The FCC launched an investigation into Verizon’s tethering practices after consumers complained that these apps were being blocked by the carrier.
The FCC ruled against Verizon and fined the company $1.25 million, which will be paid to the US Treasury. The government agency also ordered Verizon to tell App Store operators that the carrier no longer objects to the presence of tethering apps. Verizon has to devise a compliance plan that trains employees on the C Block rules, requires the company to report any instances of non-compliance and forces them to allow customers to tether for free when they subscribe to a usage-based pricing plan.