The Williams team says it withdrew its protests against Ferrari and Red Bull Racing because proceeding would not have been 'in the interests of the sport'.
The Australian Grand Prix starting line-up remained uncertain until nearly 1am local time after Williams lodged its protests, which was believed to be related to the area of the car surrounding the front edge of the sidepods.
But before the stewards reached a conclusion, Williams decided not to pursue the matter after all.
"After further detailed consideration, Williams has withdrawn both protests in the interests of the sport," said a team statement.
"Williams recognises the possibility that in this area there could be more than one interpretation of the rules and therefore does not feel it appropriate to continue with the protests."
Along with Brawn GP and Toyota, Williams is one of the squads at the centre of the current diffuser row, which saw Ferrari, Renault and Red Bull Racing protest their diffuser designs on Thursday, and subsequently launch an appeal when the FIA passed the three cars as legal.
The decision to end the protest ended the possibility of the Ferraris and Red Bulls being moved to the back of the grid. The Toyotas have already lost their grid positions after the stewards declared that the wings of Timo Glock and Jarno Trulli's cars flexed excessively.