Bauer welcomed the verdict of the appeal on Thursday, arguing it had "broader implications" for the local media industry.
Last year, Bauer were successfully sued by Rebel Wilson for defamation, following a string of articles alleging that the actress had lied about her backstory on multiple occasions.
Wilson, 38, was not present when the court handed down its ruling and published a 252-page judgement.
While the original damages awarded to Wilson were split into $650,000 in general damages and $3.9 million to compensate for work she missed out on because of the damage to her reputation, today's decision removed the $3.9 million compensation entirely, saying Wilson never actually proved a link between the Bauer articles and her missing out on roles in films.
According to Buzzfeed, the judge denied Wilson "special damages" stating she had not proven that the defamation cost her work.
It was the largest defamation win in Australian legal history and Bauer appealed, arguing the size of the settlement set a risky precedent and there were errors of law in the judgement.
"There was no basis in the evidence for making any award of damages for economic loss".
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It also reduced Wilson's non-economic losses by 50,000 Australian dollars to 600,000 Australian dollars.
Wilson won the largest defamation payout in Australian history in September 2017, after Woman's Day Magazine accused her of being a serial lair.
"As I've said before, I have already won the case and this is unchallenged!"
Wilson said previously that she would donate the money made from the case to charity and use it to support the Australian film industry. "This case was never about the money for me", she added.
Speaking on behalf of Bauer Media, general counsel, Adrian Goss, said: "It was important for us to revisit the award of damages".
During the trial, Wilson said her agents had advised her to stop mentioning her age - which was reported to be 29 in 2015 - because "Hollywood is very ageist, especially towards women".