Princess Anne's daughter, who will marry English rugby captain Mike Tindall on 30 July in Edinburgh's Canongate Kirk, is reportedly upset by the demand, but will comply with the Queen's wishes.
We can understand Zara's disappointment – although she was born into Royalty, she does not hold a title and does not take money from the British public. And, as a result of the veto, she will lose out on the £500,000 Hello! was prepared to pay for the coverage.
For us, however, all is not lost. A small selection of photographers will be allowed to take some snaps of the wedding party as they arrive at the Palace of Holyroodhouse, so we should get a good gander at the newlyweds as well as the other guests, including the Duke and Duchess of Cambridge, the Queen and Prince Harry.
What do you think of the Palace's decision? Should Zara be allowed to go ahead with the Hello! deal? Or is it better that the Royals enjoy the day out of the public glare?