The question then becomes does the contract Verizon have for peering with other transit providers allow them to charge the other transit customers for that? And

The question then becomes does the contract Verizon have for peering with other transit providers allow them to charge the other transit customers for that? And if they do what's to stop every transit provider from charging every other transit provider's customers for the same thing? And then the all important question, SHOULD they be stopped from doing it? The current structure of the internet was built around this not happening that way, but is that the way it should be? I strongly believe that letting it happen would cause many other political and routing problems for the internet as a whole to the point where it'll end up being regulated against doing it that way anyway. It could also end up then as a zero sum game between all the transit providers ending "free" peering agreements.