The Commercial Court has refused to refer an application by the State to the Court of Justice of the EU, looking to clarify the lawfulness of its plain packaging legislation.
A leading anti-smoking advocate has warned the decision means more lives could be lost from smoking.
Cigarette distributor JTI Ireland is seeking to prevent the implementation of legislation passed earlier this year, requiring all tobacco products to come in standard plain paper packaging.
Professor Luke Clancy, Director General of Tobacco-Free Research Ireland, said JTI is engaging delaying tactics - meaning money and resources will be tied up in the courts:
JTI Ireland General Manager Igor Dzaja said, "we welcome today's decision. From the outset, we said it was unnecessary to refer these questions because the CJEU is already looking at a similar referral from the UK Court.
"An Irish referral would also have had the potential to delay the European Court's decision, which is something we want to avoid," he added.