Bauer's second place finish in last month's Melbourne Cup has been confirmed following an inquiry.
Luca Cumani's charge, who went down by the narrowest margin to Viewed in Australia's feature race, was found in breach of the rules after he underwent ultrasound therapy on the Thursday before the race.
While such treatment is legal in England prior to race-day it is not Down Under, although it was decided the trainer could not be held to account after he was given the all-clear to proceed by a vet appointed by Racing Victoria Limited.
"In these circumstances a trainer was reasonable to assume that a vet assigned by RVL would have been across the rules," said chief steward Terry Bailey.
"Despite the weather, it has been a very good morning when we heard that Bauer would keep his place and obviously I'm delighted," Cumani told At The Races.
"It would have been tantamount to asking a policeman for directions and he would send you left when you weren't supposed to go left and then give you a ticket.
"I don't think this will stop people sending their horses for the race but what it highlights is that there should be more uniformity between countries that have international racing."
Connections of the placed horses could take legal action but Nick Williams, owner of third home C'est La Guerre, said the case was closed as far as he was concerned.
"I am absolutely 100% happy with Mr Bailey and his team and trusting they've made the appropriate and right decision," he said.
"We're happy to go along with whatever the umpire decides."
And trainer Danny O'Brien, whose Master O'Reilly finished fourth, had no qualms with the verdict.
"It's only a very technical rule and Luca Cumani and his staff were only acting on what the vets told them so I've got no problem with it at all," he said.

Latest Sky Sports News Report
Haye is enjoying the moment
Chelsea 1-0 Man Utd - Ferguson
Chelsea 1-0 Man Utd - Ancelotti
West Ham 1-2 Everton - Zola
West Ham 1-2 Everton - Moyes
Bring on the Klitschkos!
Wigan 1-1 Fulham - Martinez
Ed Chamberlin expects another Arsenal victory this weekend, but Chelsea and Man United could struggle...
Alex Quinn tips up the weekend's big meetings and wonders if Sea The Stars will go to the States.
Alex Quinn asks the question everybody wants answered, can anybody stop Sea the Stars?