The film, also called “Yahod Setiz”, in which Dieudonné takes the main role, was produced by the Iranian Documentary and Experimental Film Center (DEFC).
The Cannes Film Market, the festival’s business counterpart, called for the film to be dropped from the programme when it heard about it at the beginning of the week.
“Our general conditions ban the presence of all films threatening public order or religious convictions, as well as pornographic films or those inciting violence,” the film market’s executive director Jerome Paillard told AFP.
Made in nine days, the film will not be shown in cinemas but sold over the internet.
After images deriding Auschwitz, the film revolves around Dieudonné’s violent and alcoholic character dressed as a Nazi officer for a fancy dress party. Holocaust denier Robert Faurisson appears as himself in the film.
The International League against Racism and Anti-Semitism has called for the film to be banned from a DVD release.