Systembolaget, which has the monopoly on alcohol sales in Sweden, filed a lawsuit against City Gross, but the prosecutor decided to close the case.
"We are not in the least surprised since we were certain the whole time that there were no grounds for Systembolaget's police report," Johan Johnsson, deputy director of Bergendahls food, which owns and runs City Gross, told news agency TT.
It was last summer that City Gross announced it would join forces with wine delivery service Winefinder to offer home deliveries of wine to customers who order bags of food over the internet.
Now, Systembolaget wants the law on alcohol sales to be clarified.
"It has to be stated clearly that there may be no middle-hands," said Systembolaget's CEO Magdalena Gerger.
"What's happening now is that commercial online alcohol stores are setting up operations and that was never the intention," Gerger added. "It is our elected representatives who should decide on any changes and not City Gross or Winefinder."
Gerger told TT that Systembolaget is considering appealing, but she stressed the priority now is to push for a clarification of the law.