Update: Verizon responds to the brouhaha with the following statement.
Update 2: Responding to accusations that the carrier would block the Google Wallet app, Verizon says it's not that simple.We're working to provide expanded services that will provide the best security and user experience in the market around m-commerce. We expect to provide access to an open wallet when those goals are achieved.
Recent reports that Verizon is blocking Google Wallet on our devices are false. Verizon does not block applications.
Google Wallet is different from other widely-available m-commerce services. Google Wallet does not simply access the operating system and basic hardware of our phones like thousands of other applications. Instead, in order to work as architected by Google, Google Wallet needs to be integrated into a new, secure and proprietary hardware element in our phones.
We are continuing our commercial discussions with Google on this issue.
*Verizon is currently in the process of acquiring AOL, Engadget's parent company. However, Engadget maintains full editorial control, and Verizon will have to pry it from our cold, dead hands.