The ad was created by Burger King Sweden after McDonald's lost a case against Irish fast-food chain Supermac's.
The regulators' decision means companies in Europe can now use the Big Mac name without fear of legal action.
According to The Mirror, the decision, made by the European Union Intellectual Property Office, withdrew McDonald's registration of the trademark, ruling the company had failed to prove genuine use of it in the five-year period before the case was launched in 2017.
The stoush began when McDonald's allegedly used the trademark in an attempt to halt Supermac's growth into Europe, prompting the Irish chain to label McDonald's "a trademark bully".
However, a statement released by McDonald's revealed it planed to appeal the decision, The Mirror reported, with a spokesperson telling CNBC the company was "disappointed" by the ruling.
But it's not the first time McDonald's has taken legal action over potential trademark breaches.
Last November, it took on two Aussie companies, including Brisbane burger joint Burger Urge, which had an item on its menu dubbed the Big Pac alpaca burger.
Brothers Sean and Colby Carthew, who founded the eatery in 2007, said they had been served with a cease and desist for their burger, with McDonald's asking for the item to be removed from menus.
Later that month, Blackbutt Bakery in Queensland also revealed it had been contacted by the global burger giant in relation to its Big Mack pie — a concoction boasting two beef patties, special sauce, onions, pickles and cheese.