Mashable has a good overview (linked below) of the proposed policy that Verizon & Google unveiled yesterday. Essentially, the two companies want to demonstrate to the FCC that the industry can self-regulate when it comes to net neutrality. This would prevent Internet companies (both content providers & ISPs) from being subject to actual law when it comes to how network traffic is managed and prioritized.
Interestingly, Verizon & Google chose to distinguish between wired internet access & wireless internet access. They want provisions in place that would allow wireless data traffic to be managed more strictly by network operators (the cellular companies), thereby negating many of the benefits consumers would receive under true net neutrality.
Previously, Google had been quite vocal in its support for net neutrality in its purest form. This most recent development reflects a more moderate stance from Google, and has been interpreted by some in the tech media to be a concession to Verizon for their high profile support of Google's Android OS on Verizon devices.
This article is a quick read for those of you interested in public policy. You'll undoubtedly hear more about the topic over the next 24 months in the buildup to the 2012 elections.