No punishment will be dealt to the Merseyside outfit because the apparent violation occurred seven years ago and the Premier League clubs have already reached a financial settlement reportedly worth £1 million. Liverpool didn't accept any wrongdoing when they paid the sum in 2013.
"The FA has carefully considered the evidence it received in this matter, including information provided by both clubs involved, and has decided not to progress the investigation," Friday's statement read, as reported by The Times' Martyn Ziegler. "This is due to a number of factors, including the age of the alleged concerns and the settlement agreed by the two clubs involved.
"As per standard protocol, should The FA receive further information or evidence, the decision not to progress the investigation may be reviewed."
The initial report claimed Liverpool sporting director Michael Edwards and two scouts accessed City's "Scout 7" system hundreds of times between June 2012 and February 2013. When City became aware of an apparent hack, it's understood they accelerated deals for Fernandinho and Jesus Navas to avoid being gazumped in the transfer market.
City's suspicions were raised when stories emerged of Liverpool being interested in Paolo Fernandes, a player City had monitored for some time. Fernandes eventually joined City's academy from Real Zaragoza and is currently on loan at Perugia in Italy's second tier.