Verizon's request for Google to block third-party tethering apps on the Android apps store violated open Internet, or net neutrality rules, approved by the commission for the so-called C block of spectrum in the 700MHz band, filed in June 2011 by digital rights group Free Press. The FCC approved the net neutrality conditions as part of a spectrum auction completed in early 2008.

Verizon denied blocking third-party tethering apps in a statement released Tuesday.

"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," the company said in the statement. "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."

The consent decree shows that compliance with FCC rules 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. The steps taken today will not only protect consumer choice, but defend certainty for innovators to continue to deliver new services and apps without fear of being blocked."

This is the first case involving the open Internet obligations on the C block spectrum, the FCC said in a statement.