If you are over in the good old US of A and use an Android device on the Verizon network, you will know that the Big Red blocked using Android tethering apps in order to stop customer circumventing their 20-bucks per month mobile hotspot fee. However, the Federal Communications Commission believes Verizon is completely in the wrong on this matter.

As such, Gigaom is reporting that the FCC has decided that the Big Red is wrong due to the nation’s largest carrier, back in 2008 purchased spectrum that required the carrier to allow open access to their network.

As a result of the FCC’s decision on the matter, Verizon has agreed to shell out $1.25 million to the US Treasury, and furthermore, the FCC has also said that the Big Red can’t charge their customers on tiered data plans that 20-buck per month tethering charge.

But apparently as Verizon has no way of determining if their customers are using one of the apps, it is presumed that any Android device user can download and use an Android tethering app without Verizon knowing.

The FCC’s decision on the matter was based on Verizon’s purchase of the 700 MHz spectrum, and as such Verizon now has to inform Google that Verizon Wireless customers will now be able to access Android tethering apps on Google Play such as PDANet and Wireless Tether.

In the FCC statement, Julius Genachowski, the Chairman of the FCC stated that this action will demonstrate compliance with FCC obligations is not optional, and steps taken will not only protect customer choice but also defend certainty for innovators to continue delivering apps and services without being blocked.