By DIBYA SARKAR
Associated Press

WASHINGTON - Federal regulators determined Friday that Verizon Communications Inc. did not violate consumer-privacy laws when it tried to keep customers who wanted to cancel Verizon and switch to cable providers for voice services.

The Federal Communications Commission's enforcement bureau reached its determination in response to a complaint filed by Comcast Corp., Time Warner Cable Inc. and privately owned Bright House Networks.

The enforcement bureau's action is still a recommendation and must be approved by the agency's five commissioners within 70 days. The cable companies can challenge the recommended decision within 15 days.

The three cable companies complained that Verizon was trying to retain customers - who wanted to cancel their Verizon voice services and switch to another provider - by improperly using proprietary information. They alleged that Verizon also engaged in anticompetitive practices.

The `acable companies alleged that Verizon improperly used customer information for marketing purposes in violation of federal law.

The three cable companies filed the complaint Feb. 11. The deadline for a decision was Friday.

The enforcement bureau also recommended that FCC commissioners seek further public input on rules governing competition for voice, video and Internet services and whether further regulation is needed.

"It is important that we do everything we can to maximize consumer choice and reduce rates," said FCC Chairman Kevin Martin in a statement. "In today's competitive telecommunications market we must make sure that there is a level playing field for all companies to compete."

Verizon said it supported the agency's examination of cable practices that affect consumers' ability to choose among providers.

"The cable industry's effort in this complaint to suppress communications would reduce consumer choice, and the bureau's recommendation to reject it is legally correct and good policy," Tom Tauke, Verizon's executive vice president, said in a statement.

Comcast said it will continue to fight.

"We are evaluating our legal options at the federal level and will continue to pursue our complaints with state public utility commissions," spokeswoman Sena Fitzmaurice said in an e-mail to The Associated Press.

Brian Dietz, a spokesman for the National Cable & Telecommunications Association, said the decision is "bad news" for consumers.

"It's astonishing that the commission is affirming such anticompetitive practices, which deny consumers the benefits of lower prices and better service that are a result of real facilities-based telephone competition," he said.