His Nationalist Party lost both the presidency and its parliamentary majority to the pro-independence Democratic Progressive Party in elections in January last year.
The Taipei District Court found Ma innocent on Tuesday.
Taiwan`s China-friendly former President Ma Ying-jeou has been found innocent of libel and leaking confidential information in a case involving suspected influence peddling by a powerful lawmaker.
The charges against Ma stemmed from a 2013 lawsuit brought by Democratic Progressive Party lawmaker Ker Chien-ming alleging that the then-president leaked information from a wiretapped conversation featuring powerful Nationalist lawmaker Wang Jin-pyng.
Ma was credited with substantially improving Taiwan`s relations with rival China during his two terms in office from 2008 to 2016.
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