Verizon is not allowed to block the use of tethering apps, the FCC told the company Tuesday, reports GigaOm. Verizon has settled with the FCC in the dispute over tethering apps, which allow customers to use their smartphone's data plans without paying for special tethering services through Verizon. Verizon has offered a $1.25 million payment to the US Treasury as a result.

As smartphones shot up in popularity, customers began experimenting with linking their data connection to computers and other devices to allow them to connect to the Internet. Most often, this was done using tethering apps on the Android store. While the free-loving app store often let tethering apps through for purchase, they were often quickly deleted or blocked by the carrier.

Verizon specifically blocked tethering apps in order to get customers to pay an extra $20 per month to use their data plan to connect other devices via their smartphone. According to FCC (and every customer, ever), this was kind of a ripoff.

The FCC concedes that Verizon may charge $20 per month for customers who retain grandfathered unlimited data plans. But for all the rest with a concrete data limit, it's a plain-faced money grab, and the $20 per month charge needs to end. So boldly sally forth, would-be Verizon plan tetherers, and tether freely. Just watch those overage charges.