The closure of a massive cannabis café in Terneuzen in 2009 was correct, the Council of State ruled on Wednesday.
At its height, the Checkpoint cafe near the Belgian border was serving up to 3,000 clients and processing 10 kg of marijuana a day.
Coffee shops with more than 500 grammes of cannabis on the premises are not covered by the official policy of turning a blind eye to soft drugs.
Last year the owner was found guilty of membership of a criminal organisation and fined €9.7m. He is currently appealing.