The mining magnate launched a criminal case against the social media giant, accusing it of being criminally reckless in allowing bogus ads for a cryptocurrency investment scheme using his image to appear on its site.
The Commonwealth Director of Public Prosecutions was expected to take over the matter in the WA District Court on Friday, because a private citizen cannot prosecute charges on indictment.
But it instead filed a discontinuance notice ending the matter.
When Dr Forrest launched the case in 2022 it was the first time Meta had been prosecuted with criminal charges - three counts of recklessly dealing with proceeds of crime to the value of $1000 or more - related to its social media platform.
It's alleged the company failed to take sufficient steps to take down the scam ads, that were published in 2019 and feature Dr Forrest and other prominent Australians.
The philanthropist has said Meta "blatantly" refused to remove thousands of fraudulent scam ads on its platforms despite repeated requests.
Meta had entered pleas of not guilty to the charges after initially saying it had no case to answer in Australia.
Dr Forrest, the founder of Perth-based Fortescue Metals Group, also launched civil proceedings against Facebook in California in September 2021.
That matter is also scheduled to be heard in the US on Friday.
The civil case will determine if Meta is liable for allegedly publishing and not removing thousands of fraudulent ads featuring Dr Forrest's image.
"I'm asking the courts of California, I will ask the courts of Australia, to fix this illegal or improper content rapidly," Dr Forrest said.
If successful, it could force Meta to be more accountable for fraudulent content on its platforms in Australia and globally.
