McLaren have been stripped all of their points in the 2007 Formula One constructors' championship and fined $100 million as a result of a spying controversy.
However, McLaren drivers Lewis Hamilton and Fernando Alonso have kept their points in this year's championship.
Hamilton currently leads Alonso by just three points in the driver's standings.
Asked if justice had been done, the president of the FIA Max Mosley said 'Yes'.
Following a 10-hour meeting at the FIA headquarters in Paris a statement read: 'The WMSC have stripped Vodafone McLaren Mercedes of all constructor points in the 2007 FIA Formula One world championship and the team can score no points for the remainder of the season.
'Furthermore, the team will pay a fine equal to $100million, less the FOM (Formula One Management) income lost as a result of the points deduction.
'However, due to the exceptional circumstances in which the FIA gave the team's drivers an immunity in return for providing evidence, there is no penalty in regard to drivers' points.
'The WMSC will receive a full technical report on the 2008 McLaren car and will take a decision at the December 2007 meeting after what sanction, if any, will be imposed on the team for the 2008 season.'
The decision means Ferrari, currently second overall and 57 points clear of BMW Sauber with four races remaining, look certain to be crowned champions.
Team boss Ron Dennis left the marathon hearing in sombre mood following the sanctions meted out to his team.
Dennis later said: 'The most important thing is we go motor racing this weekend, the rest of the season and every season.
'This means our drivers can continue to compete for the world championship.
'However, having been at the hearing I do not accept that we deserve to be penalised or our reputation damaged in this way.
'Today's evidence given to the FIA by our drivers, engineers and staff clearly demonstrated we did not use any leaked information to gain a competitive advantage.
'There will be no issue for the 2008 season as we have not at any stage used any intellectual property of any other team.
'We've got the best drivers and the best car, and we intend to win the world championship.'
McLaren were found guilty at an initial hearing on July 26, although no penalty was imposed due to what the council described as 'insufficient evidence'.
Suspended chief designer Mike Coughlan was found to be in possession of 780 pages of Ferrari technical information, stored on computer disks at his home.
However, at that stage there was no evidence to suggest the dossier had been used with regard to this year's McLaren car.
McLaren also pointed out Coughlan was a rogue employee working to further his career ambitions in conjunction with Nigel Stepney, sacked as Ferrari's head of performance development.
But since the July hearing other evidence materialised resulting in today's meeting, at the end of which the council severely penalised McLaren.
It remains to be seen whether the team will appeal given this case has already dragged on for three months.
Dennis was supported today by Hamilton, the 22-year-old Briton who has taken this year's championship by storm in his debut year.
But now a cloud will hang over any possible success should he go on to become the first driver to win the title in his rookie year.
