Prince Harry is suing Associated Newspapers Limited (ANL) for libel over a February article about his legal battle with the Home Office.
His barrister said the story falsely suggested he had "lied" and "cynically" tried to manipulate public opinion.
But ANL said it contained "no hint of impropriety" and was not defamatory.
The High Court ruling is the first stage of the libel battle, which aims to establish what the article meant and what claims the newspaper group will have to defend.
