Dozens of protesters have blocked a major court precinct while pushing for a former Israeli adviser to face charges for allegedly advocating genocide.
Uncle Robbie Thorpe and Daniel Taylor launched their private prosecutions against Mark Regev in Melbourne Magistrates Court, accusing him of endorsing actions constituting genocide in Gaza.
Mr Regev is an Australian citizen and former senior adviser to Israel's Prime Minister Benjamin Netanyahu.
They alleged Mr Regev supported policies aimed at harming the Palestinian population in Gaza, including advocating for starvation.
At a brief hearing on Tuesday morning, the Commonwealth Director of Public Prosecution informed the court it would be taking over the case and withdrawing the charges.
Mr Taylor argued the court had the authority to still hear the case as private prosecutions.
But Magistrate Brett Sonnet said he could not go against the director's decision and instead formally struck out the charges against Mr Regev.
"I'm not judging the merits of your prosecution - I want to be crystal clear," Mr Sonnet said.
"You can take the matter to a superior court."
Uncle Robbie told the magistrate that's what he intended to do, saying he had unceded sovereignty and he was not subject to commonwealth or state laws.
Protesters blocked William Street outside the Melbourne Magistrates Court as the hearing took place, with trams banking up and traffic diverted.
Dozens of police officers also lined the steps of the court as protesters held an Aboriginal flag and banners saying "Stop genocide now".
There were cheers and chants of "Always was, always will be Aboriginal land", as Uncle Robbie and Mr Taylor exited the court building.
The protesters cleared the road shortly after 10.30am, with tram services resuming.