Marc Veyrat’s La Maison des Bois restaurant in the Haute Savoie was demoted from three to two stars by the guide in January 2019.
The chef sued Michelin and demanded a full explanation after claiming its inspectors ‘dared to say’ he had put cheddar in a souffle.
But The Telegraph reports a French court has dismissed his case and ordered Veyrat to pay costs after he failed to show he had suffered material damage.
Michelin’s lawyer branded Veyrat a ‘narcissistic diva’ and argued that it was a consumer guide and ‘not the property of chefs’.
Veyrat previously demanded his restaurant be withdrawn from the red book and claimed the loss of the third star had caused him to become depressed.
His 25-cover restaurant offers two tasting menus priced at €295 for lunch and a €395 version available at lunch and dinner.
The Michelin Guide’s listing says the chef's cooking ‘always surprises’ but comes at a ‘high price’.
Veyrat’s case is one of several recent high-profile clashes between Michelin and top chefs.
Last year France's Sébastian Bras was surprised to find his restaurant Le Suquet included in the Michelin Guide France 2019 after he publicly asked to withdraw from its pages.
South Korean chef Eo Yun-gwon is also reportedly suing the guide after it included his restaurant in its 2020 Seoul edition against his wishes.