From DailyTech: Verizon is no longer allowed to use proprietary information from its rivals to persuade phone owners to switch from Verizon's competitors, a U.S. appeals court ruled.
Verizon tried to defend itself by saying it should be allowed to undercut competition by offering better deals to customers who were thinking about switching phone carriers. Comcast, Time Warner, and Bright House Networks all complained to the Federal Communications Commission (FCC) about Verizon's activities, saying they violate federal law.
In essence, Verizon was caught sending letters to customers who canceled their service trying to persuade them to go back to Verizon rather than let them sign up with a competitor. Rather than simply port the number after a customer requests it be transferred to a new service, Verizon allegedly delayed the process in an effort to persuade customers to rejoin.
This activity is banned under federal rules, which caused a government investigation into Verizon's activities.
Specifically, when a company contacts another rival company, it's known as a "port," which means the companies transfer the same phone number to the new carrier.
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