The debate in Washington over net neutrality was a constantly moving target last week. A rumor spread mid-week that while the major players were engaging in closed-door discussions at the Federal Communications Commission, Google (NASDAQ: GOOG) and Verizon (NYSE: VZ) had struck a deal that would allow the telco to charge a fee for prioritizing some Internet content. But before the week's end, Google denied the rumor, and the FCC called off the talks. 

It's a lot of inside-the-Beltway policy-making minutia, but the outcome could have a potentially dramatic impact on how Internet content is paid for. Consumer advocates went ballistic upon hearing of the alleged Google/Verizon deal, warning that the end of the Internet was nigh. 

"It is unseemly and inappropriate for two giant companies to decide the future of the Internet and how Internet will work for millions of users. It would be inappropriate for Congress and the FCC policy makers to use this agreement as the basis for public policy," a coalition of public interest groups, including the Consumer Federation of America and Media Access Project, said in a statement.  

At this point, the FCC is likely to proceed with its effort, outlined by Chairman Julius Genachowski in the spring, to reclassify Internet service providers as common carriers so that it can subject them to some of the non-discrimination rules the telcos are subject to.

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