ISTANBUL, Dec 19 (Reuters) - A Turkish court has acquitted a popular Turkish transsexual singer over comments questioning a military campaign against Kurdish separatist guerrillas, state-run Anatolian news agency said.

Bulent Ersoy was tried on charges of "turning the people against military service" in a case that raised concerns about free speech in the European Union candidate, where criticising the military, powerful and respected institution, is a crime.

The court ruled that Ersoy's comments, which angered the country's powerful armed forces, were within the bounds of freedom of expression, the agency said late on Thursday.

"The court acquitted Ersoy, ruling that the defendant's comments did not constitute a crime and were in line with the free expression of individual views," the agency quoted the ruling, widely reported in the Turkish media, as saying.

Court officials were not available to comment on the ruling.

Ersoy, one of Turkey's most famous singers, caused a stir in February by saying that were she able to give birth to a son she would not allow him to fight in neighbouring Iraq, where the military had launched operations against Kurdish rebels.

If found guilty she could have faced up to 2-1/2 years in prison.

Ersoy made her comments on a television show at a time when the Turkish army was conducting a major operation against Kurdistan Workers Party (PKK) rebels in northern Iraq.

The PKK use northern Iraq as a base from which to launch attacks in southeastern Turkey, where it seeks to create an independent homeland. Some 40,000 people have been killed in the conflict since the PKK took up arms in 1984. (Reporting by Daren Butler)

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