US regulators have halted closed-door meetings intended to find a way to make sure all web data is treated equally.
The Federal Communications Commission began the meetings after a court limited its net regulation powers.
The FCC faced criticism over the meetings by groups that supported the principle known as net neutrality.
The FCC decision follows reports that Google and Verizon hatched a separate deal to allow faster speeds for web sites that pay for the privilege.
"Any outcome, any deal that doesn't preserve the freedom and openness of the internet for consumers and entrepreneurs will be unacceptable," said FCC chair Julius Genachowski.
Both firms denied they were close to an agreement that many fear would lead to a "two-tier internet".
Google said: "We remain as committed as we always have been to an open internet".
In a blog post net service provider Verizon also clarified its position.
"As we said in our earlier FCC filing, our goal is an internet policy framework that ensures openness and accountability, and incorporates specific FCC authority, while maintaining investment and innovation," wrote David Fish, executive director of media relations for Verizon.
"To suggest this is a business arrangement between our companies is entirely incorrect," he added.
Despite the public statements, reports that an agreement will soon be announced persist.
During the Techonomy conference in Lake Tahoe, California, Google boss Eric Schmidt would not be drawn on the issue.
"We have been talking to Verizon for a long time about trying to get an agreement on what the definition of what net neutrality is," he told reporters.
"We are trying to find solutions that bridge between the hard core 'net neutrality or else' view and the historical telecom view of no such agreement."
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