What you're describing is anti-competitive behaviour. That's illegal in most places. In areas with little regulation it is never a problem because monopolies make zero profit in the long term when there is no barrier to entry and exit. There is a barrier to entry for ISPs, but the more freedom the lower this barrier becomes.
If there were no regulations and laws at all, I would be confident that Verizon would collapse quite quickly. In a totally free market predatory behaviour doesn't work out well and consumers will look elsewhere.
Net Neutrality at its core was government control over ISPs. It was never about business or economics. Always control and power.