Verizon Wireless sues FCC over auction rules

Verizon Wireless filed an appeal against the FCC stating that the FCC exceeded its authority when it established its rules for the upcoming 700 MHz spectrum auction. Verizon calls the rules "arbitrary, capricious, unsupported by substantial evidence and otherwise contrary to law." Verizon has asked the court to vacate, enjoin or set aside this portion of the auction rules, which require winning bidders on the C Block of spectrum not to block any device or application that does not harm the network.

Google responded to Verizon Wireless' suit with a blog post: "The nation's spectrum airwaves are not the birthright of any one company... It's regrettable that Verizon has decided to use the court system to try to prevent consumers from having any choice of innovative services. Once again, it is American consumers who lose from these tactics."

For more on the suit:
- read the text of the lawsuit here
- read Google's blog reply here