The footballer was originally granted an injunction last year to ban press reports about his affair with Big Brother star Imogen Thomas.
However, the news spread on Twitter and Giggs was later named as the man behind the court order by Liberal Democrat MP John Hemming in the House of Commons, allowing it to be published in the UK.
The High Court yesterday threw out a damages claim brought by the Manchester United midfielder against The Sun newspaper for printing the story.
The ruling leaves Giggs facing a huge legal bill following ten months of attempting to keep details of his love life private.
"It's been another legal disaster for Giggs. So far his legal battles have been far less Manchester United and more like Bath City," Max Clifford, who represents Thomas, told the Daily Star.
"There can be few people in England and Wales who have not heard of this litigation," Mr Justice Tugendhat said in the hearing yesterday (March 2).
"The initials CTB have been chanted at football matches when Mr Giggs has been playing and Mr Giggs had been named in Parliament, raising questions as to the proper relationship between Parliament and the judiciary."
Giggs has also been accused of having an eight-year affair with his brother Rhodri's wife Natasha.