Ferrari have failed in their bid to acquire an injunction against the FIA and their decision to introduce a budget cap into Formula One from next season.
Amidst fears of F1 becoming a two-tier championship from 2010, the sport's most iconic name sought to oppose motor sport's world governing body.
But after a one-hour hearing yesterday at the Tribunal de Grande Justice in Paris, judges have today sided with FIA president Max Mosley's organisation.
The decision means all the current teams, and the potential new entries, now have until May 29 to sign up to the cap regulation.
Mosley set a figure of £40million at the end of April, sparking uproar amongst the major manufacturers who spend four and five times that amount per annum.
It could mean Ferrari now decide to pull out of F1, as they have recently threatened to do, and compete in other series.
Just a few minutes prior to the 1pm BST announcement, and perhaps in anticipation of their defeat, Ferrari slammed the quality of the eight teams looking to enter the sport next year.
As part of yesterday's proceedings, all eight presented a letter to the tribunal urging them to throw out the case.
If Ferrari had been victorious, it would have put the new rules on hold, including the entry deadline, threatening the prospect of fresh blood coming into the sport.
The article, on official website www.ferrari.com, read: 'They could not believe their eyes, the men and women working at Ferrari, when they read the papers this morning and found the names of the teams declaring their intention to race in Formula One next year.
'Looking at the list, leaked yesterday from Paris, you cannot find a famous name, one of whom has to spend €400 per person for a place in the grandstand at a GP (plus the expenses for the journey and the stay).
'Wirth Research, Lola, USF1, Epsilon Euskadi, RML, Formtech, Campos, iSport: these are the names of the teams, due to compete in the two-tier Formula One wanted by Mosley.
'Can a world championship with teams like them - with due respect - have the same value as today's Formula One, where Ferrari, the big car manufacturers and teams, who created the history of this sport, compete?
'Wouldn't it be more appropriate to call it Formula GP3?'