It wasn't entirely unexpected - but the fact the Duke and Duchess of Sussex can no longer use their His and Her Royal Highness styling will still come as a major blow to the couple, who have spent thousands of dollars on their Royal Sussex brand new website as well as trademarking the label for a range of items.
Most famously their Instagram account @sussexroyal has amassed a huge following with the couple reaching the same number of followers as the Duke and Duchess of Cambridge – 11.2 thousand – in less than a year.
Harry and Meghan had also taken steps to launch their new charitable organisation: Sussex Royal, The Foundation of the Duke and Duchess of Sussex, but it has now been made clear that they will have to 're-brand'.
The couple's bombshell decision to step back as senior working royals and pursue "financial independence" jeopardised the couple's ability to keep the word 'royal' in their branding as it would be deemed inappropriate to profit from the word.
Along with losing the ability to use Sussex Royal and their HRH styling, in stepping back the couple will no longer represent the Queen with Prince Harry also losing all his military roles. The couple have also agreed to pay back the millions of dollars of tax-payer money, used to refurbish their Windsor home, Frogmore Cottage.
"In many ways, this was inevitable given their decision to step down," an inside source told the Daily Mail.
"But it must surely come as a blow to the couple as they have invested everything into the Sussex Royal brand. The Queen would have had little choice, however.
"The Sussexes' original plan – of being half-in, half-out working royals – was never going to work. Obviously, as the Queen has made clear, they are still much-loved members of the family."
However, the source adds that because the couple is no longer carrying out official duties and are now seeking commercial opportunities they simply cannot be allowed to market themselves as royals.
Despite not playing out the way the couple had hoped, Prince Harry revealed earlier this month that despite how difficult the process has been for him and Meghan, he does not regret his decision to step down as he wanted to protect his family from the scrutiny he endured growing up.
He also spoke at a private dinner in London in aid of his charity Sentebale just days after the decision was finalised saying he felt there was "no other option".
His close friend, Argentinian polo player Nacho Figueras, supported Prince Harry's sentiments, telling the ABC that his longtime friend has "suffered a lot" and that his decision was made to protect his family.
"He was the son of someone who suffered attacks from the press and that's undeniable," Nacho explained.
"He doesn't want that to happen for his family."
WATCH: Prince Harry shares 'the truth' about his and Meghan's exit from royal life. Story continues below...
Harry, Meghan and nine-month-old Archie are currently in lockdown on Canada's Vancouver Island — with Harry feeling "a bit helpless and isolated out in the middle of nowhere" after leaving the UK, according to sources.
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