The court ruled it could not prove the controversial French comedian was behind the video’s release.
Dieudonne M’bala M’bala, who has convictions for inciting hatred against Jews, had faced a fine of 20,000 euros ($27,000) or 200 days in prison.
France recently banned one of Dieudonne M’bala M’bala’s shows over concerns about anti-Semitism.
The comedian already owes 65,000 euros in fines for six convictions of hate speech against Jews.
Last week, police raided several properties owned by Dieudonne M’bala M’bala as part a probe into alleged fraud.
The government accused Dieudonne M’bala M’bala of trying to bankrupt himself in order to avoid paying the fines.
The comedian has caused controversy in recent months with what many regard as anti-Semitic comments.
He has joked about gas chambers and is accused of deriding Holocaust survivors and victims.
His trademark “quenelle” gesture has been described by some as an “inverted Nazi salute”.
Dieudonne M’bala M’bala says the quenelle is an anti-establishment gesture, and denies that he is an anti-Semite, saying he is anti-Zionist.
In January, France’s highest court upheld a ban on Dieudonne M’bala M’bala’s one-man show The Wall (Le Mur), which contained sketches including the performer miming urination against the Western Wall in Jerusalem.
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