Sessions Court judge Edwin Paramjothy ordered their acquittal after deputy public prosecutor Norinna Bahadun told the court that the prosecution did not wish to continue the cases against them.
Paulsen claimed trial at the Sessions Court in February 2015 to a charge of criticising the Malaysian Islamic Development Department (Jakim) on his Twitter account.
Arutchelvan meanwhile was charged with sedition in November that year for allegedly criticising the judiciary over the Sodomy 2 judgment.
Speaking to reporters after the acquittal, Paulsen said there was no need for a colonial law on sedition in this age.
“Any investigations under the Sedition Act should also cease as the government promised to repeal the law,” he said, referring to the current police investigations on lawyer Fadiah Nadwa Fikri and activist Asheeq Ali Sethi Alivi.
Fadiah came under scrutiny over an article on Anwar Ibrahim’s meetings with the Malay rulers while Asheeq is being probed over a speech at a rally allegedly insulting the Yang di-Pertuan Agong.
Meanwhile, Arutchelvan said there was no need for the government to waste time and money prosecuting people who spoke against it.