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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared UPDATE 2-Google ordered to defend against age bias lawsuit 05 Aug 2010 Snap analysis: July jobs show odd mix of bad news 8:55am EDT Senate approves Obama nominee Kagan to top court | Video 05 Aug 2010 UPDATE 1-US Postal Service loses $3.5 bln in third quarter 05 Aug 2010 Weak private hiring shows recovery on the ropes | Video 4:38pm EDT Dog chews off Michigan man's toe, saves his life 04 Aug 2010 Cancer cells slurp up fructose, US study finds 02 Aug 2010 Wheat hits loss limit after rally on Russia export halt 1:52pm EDT Goolsbee and Tyson considered for White House economy job 2:46pm EDT Women find men in red more appealing? 05 Aug 2010 Cancer cells slurp up fructose, US study finds 02 Aug 2010 Dog chews off Michigan man's toe, saves his life 04 Aug 2010 UPDATE 1-US Postal Service loses $3.5 bln in third quarter 05 Aug 2010 UPDATE 2-Google ordered to defend against age bias lawsuit 05 Aug 2010 Weak private hiring shows recovery on the ropes | Video 4:38pm EDT Women find men in red more appealing? 05 Aug 2010 Chavez may bar nominee U.S. envoy for "meddling" 05 Aug 2010 Snap analysis: July jobs show odd mix of bad news 8:55am EDT New study blasts theory that women do more work 05 Aug 2010 Senate approves Obama nominee Kagan to top court | Video 05 Aug 2010 Internet traffic talks collapse Digg This Tweet This Share on LinkedIn Share on Facebook Related News Analysis: U.S. seen moving toward controversial broadband step 3:38pm EDT Related Topics Technology » iPad » Media » By John Poirier WASHINGTON | Fri Aug 6, 2010 3:39pm EDT WASHINGTON (Reuters) - Regulators halted closed-door negotiations about net neutrality rules with phone, cable and Internet companies on Thursday after reports of a side deal between two participants, Verizon Communications Inc and Google Inc, surfaced. "We have called off this round of stakeholder discussions," said Edward Lazarus, chief of staff for Federal Communications Commission Chairman Julius Genachowski. The collapse means Genachowski may have to decide how to regulate Internet access without further input from the industry. His decision will likely be challenged in court. "It has been productive on several fronts, but has not generated a robust framework to preserve the openness and freedom of the Internet," Lazarus said of the meetings in a statement. "All options remain on the table." An analyst warned that the series of private meetings among industry stakeholders could implode due to the deal between Verizon and Google over a set of Internet traffic principles, called net neutrality. "Any outcome, any deal that doesn't preserve the freedom and openness of the Internet for consumers and entrepreneurs will be unacceptable," Genachowski told reporters. His comments and the decision to halt the meetings were lauded by public interest groups. "We're relieved to see that the FCC now apparently finds dangerous side deals from companies like Verizon and Google to be distasteful and unproductive," Derek Turner, research director at the public interest group Free Press, said. Under the deal, Verizon would not block or slow Internet traffic over land lines, but could do so to wireless devices, one source told Reuters on Wednesday. A Verizon spokesman on Thursday denied that the deal represents a business arrangement between the two companies. The agreement was reached while the private FCC meetings involving the two companies, AT&T Inc and other Internet companies to set rules for the industry were taking place. According to several people who have been briefed on the FCC meetings, no consensus was imminent and it would have been unlikely for Congress to pass any such agreed-upon framework in a bill in this session, especially with the looming elections. CLASSIFYING BROADBAND The FCC voted in June to collect public comments on whether the agency should reclassify broadband regulation under existing phone rules -- typically considered a stricter regulatory regime. Any compromise on net neutrality could have staved off reclassification, a move aimed at giving the FCC more power over broadband access after a stinging court loss. Earlier this year, a U.S. appeals court ruled that the FCC lacked authority to stop cable television company Comcast Corp from blocking bandwidth-hogging applications. The deal between Verizon and Google was not a complete surprise for the industry because the two companies have worked closely in the wireless device area. Verizon Wireless, a venture between Verizon Communications and Vodafone Group Plc, depends heavily on phones based on Google's Android software for growth. It is not known if the other stakeholders would find the deal an acceptable framework for their businesses but AT&T said it is not a party to the deal. (Editing by Leslie Gevirtz and Gerald E. McCormick) Technology iPad Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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