Opposition politicians had mounted a campaign to strip C8 and its sister station, CNews, of their licences over “disinformation, racism, sexism, inciting hatred and failure to respect pluralism”.
Arcom said its decision on licences was made in “the interest of each project for the public with regard to the priority imperative of pluralism of socio-cultural currents of expression”.
However, the move is likely to stoke political tensions during a febrile period for France.
The National Assembly is locked in a power tussle following recent elections that returned a hung parliament.
President Emmanuel Macron called a snap election last month after Ms Le Pen’s National Rally made large gains in European elections, signalling a shift to the Right across France.
Ms Le Pen condemned Arcom’s decision, writing on X: “For those in power, pluralism is unacceptable. So, little by little, they will try to make it disappear so that all TV channels and radio stations deliver the same message.”
Mr Bolloré, a devout Catholic whose fortune originated in maritime freight and paper manufacturing, is a vocal supporter of Ms Le Pen’s hard-Right party.
He has been tightening his grip on French media through his TV stations, as well as weekly newspaper Le Journal du Dimanche, and has faced criticism for alleged editorial interference.
While C8 has been stripped of its licence, other stations owned by the billionaire including CNews and Canal+ had their licences renewed.
Nevertheless, the decision is a setback to Mr Bolloré, who is planning to float Canal+ on the London Stock Exchange.
Vivendi, the parent company behind the pay-TV group, said it had chosen London “to reflect the company’s international dimension”.
Arcom also gave the green light to ReelsTV, a channel launched by Czech tycoon Daniel Kretinsky.
Mr Kretinsky, a former investor in Le Monde, is facing scrutiny in the UK over his planned £3.6bn takeover of Royal Mail.
Canal+ declined to comment.
