A CHALLENGE: Verizon Communications Inc. on Thursday filed a legal challenge to new federal regulations that prohibit broadband providers from interfering with Internet traffic flowing over their networks.

NET NEUTRALITY: The regulations prohibit phone and cable companies from favoring or discriminating against Internet content and services _ including online calling services such as Skype and Internet video services such as Netflix, which in many cases compete with services sold by companies like Verizon.

OUT OF BOUNDS: In a filing in federal appeals court in the District of Columbia, Verizon argues that the Federal Communications Commission overstepped its authority in adopting the new "network neutrality" rules last month.