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Report: Google, Verizon reach Net neutrality deal

Bloomberg reports that Verizon has agreed not to selectively throttle Web traffic, with the exception of mobile data.

Google and Verizon have negotiated an agreement on how to handle Web traffic, according to a report by Bloomberg on Wednesday.

The deal was arrived at separate of the ongoing negotiations between the Federal Communications Commission and other Web and telecommunications giants, according to Bloomberg's anonymous sources.

As part of the deal, Verizon would agree not to selectively throttle Internet traffic through its pipes. That would not, however, apply to data traveling over its wireless network for mobile phones, the report says.

When reached for comment, a Verizon spokesman offered this statement: "We've been working with Google for 10 months to reach an agreement on broadband policy. We are currently engaged in and committed to the negotiation process led by the FCC. We are optimistic this process will reach a consensus that can maintain an open Internet and the investment and innovation required to sustain it."

Google did not immediately respond to a request for comment.

If the reports are true, it would be a blow to the ongoing negotiations between many of the giants of the industry and the FCC, as well as the FCC's controversial efforts to apply its regulatory powers to broadband services.

The FCC has been working with Verizon, Google, AT&T, Comcast, Microsoft, Amazon.com, and others on how to regulate broadband traffic. FCC Chairman Julius Genachowski's "third way" proposal for redefining broadband traffic would allow the commission reclassify broadband services from a lightly regulated Title I Information Service to a more vigorously regulated Title II Telecommunications service.

Broadband service providers, such as AT&T and Verizon, are against that. Google, eBay, Amazon, and Skype support the FCC's efforts to reclassify broadband services so that the commission can enforce new Net neutrality regulations.

Verizon and Google have been working together on trying to reach a compromiseon the issue since October. Shortly after the two companies announced Verizon phones with Google Android OS, their respective CEOs said they'd try to find common ground on what is a divisive issue between them.

Updated at 3:54 p.m. PDT with comment from Verizon, and with additional context at 4:22 p.m. PDT.