Gina Rinehart and her company Hancock Prospecting threatened to sue the ABC after a filmmaker on television series Race Around the World made a graphic joke which included mixing Mrs Rinehart's guts into a sausage roll.
The show was broadcast on July 12 and remained available on digital platforms until Thursday, when ABC managing director Hugh Marks apologised to Mrs Rinehart and had the relevant portion removed.
"While the Ombudsman found the film did not breach the ABC's editorial policies, the ABC acknowledges the episode has fallen short of community expectation," Mr Marks said in a statement.
"The ABC apologises to Mrs Rinehart and to anyone else affected or upset by the publication of the film."
The ABC initially resisted the Hancock boss' calls for the content to be ditched.
On Saturday, Hancock said it had not received any correspondence from the ABC a week after calling for the broadcaster to remove contestant Kate McGuinness' film.
In the film titled A Very Relaxing Video, broadcast on July 12, McGuinness made comments about a possible future revolution in which participants may be "mixing (Ms Rinehart's) guts up nice and smooth, to make one big sausage roll to make something out of nothing".
"This appalling material, presented by the taxpayer-funded ABC as 'entertainment', illustrated and graphically described Mrs Rinehart being sodomised and tortured in a manner that would kill her," a Hancock spokesman said.
"It is nothing short of disgusting the ABC would encourage and normalise violence and murder by broadcasting, publishing and continuing to distribute this content.
"This was not an unscripted live comment; it passed through production, editorial and broadcast processes."
In a statement published by the ABC, McGuinness said her comments were not meant to be taken seriously and were not intended to promote violence.
"The sense of humour featured in each of my films on the Race Around The World program is farcical," she said.
"My writing is cartoonish and always satirical. Unfortunately, jokes do not land with everyone."
Mr Marks said a review of the matter showed a need to change editorial policies.
""As a result, the ABC will amend its guidance as it applies to violence."
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