The criminal court in French Polynesia has acquitted all suspects in the case over the Honotua cable contract.
Ten people were in court last month, charged with favouritism over the awarding of an 80 million US dollar contract to lay the communications cable to Tahiti.
The project was launched in 2006 and signed off with Alcatel-Lucent Submarine Network in 2008 amid rapid changes of government.
Among those acquitted are three former heads of the telecommunications company OPT as well as a former minister, Emile Vernaudon.
Favouritism can under French law be punished with up to two years imprisonment.
The prosecution has two months to appeal against the acquittal.