The European Commission has cleared the proposed acquisition of UK operator O2 by Spanish teleco Telefonica, under the condition that Telefonica undertakes to exit the FreeMove alliance. The Commission said it was concerned that the acquisition would result in distortions of competition in the market for international roaming services, in particular in the UK and as a result, in order to remove these concerns, Telefonica has agreed to exit the alliance. In light of this commitment, the Commission said the transaction will not significantly impede effective competition in the European Economic Area. The main cause for concern was that O2 would in the normal course of events, be expected to move from the Starmap alliance to the FreeMove alliance, or…