According to Daily Mail, the photo was taken while Kate and Prince William were on holiday in Provence, south of France in September 2012.
The court ordered editor, Laurence Pieau; and publisher, Ernesto Mauri, to each pay €45,000 ($53,000) in fines, the maximum possible.
The court also ordered the magazine to hand over the files with the images to the royal couple.
The couple had sought €1.4m in damages and interest and while it is a fraction of their demand, the amount ordered to be paid still stands as one of the highest ever in a privacy case in France.
The French celebrity magazine’s lawyer Paul-Albert Iweins said he was “pleased” with the ruling on the damages to pay, but said the fine was “exaggerated for a simple private matter.”
The royal couple’s lawyer Jean Veil, declined to comment, adding that Kensington Palace would make a statement.
The couple were reportedly snapped with a long lens relaxing by a pool at a chateau belonging to Viscount Linley, a nephew of Queen Elizabeth.
The pictures triggered a furious reaction from the royal family in Britain, where several newspapers rejected an offer to buy the pictures.
Closer, a glossy gossip magazine, was the first to splash them on its cover and the couple filed a criminal complaint about invasion of privacy and obtained an injunction preventing further use of the images.
In a letter read out in court, William said the case reminded him of the paparazzi hounding of his mother, Princess Diana, who was killed in a car crash in Paris 20 years ago.
Two Paris-based agency photographers, were each given fines of €10,000, with €5,000 suspended.
They learned of their impending publication while on an Asia-Pacific tour to mark the diamond jubilee of William’s grandmother Queen Elizabeth II.
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