Dubai Chocolate, filled with pistachio paste and thin pastry, became a viral sensation on social media platforms such as TikTok, with some videos racking up tens of millions of views.
The sought-after chocolate bars sparked mass runs on shops last year, and have resold for hundreds of euros online after selling out in stores.
The Cologne court ruling, which can be appealed, followed a complaint brought by businessman Andreas Wilmers, who imports "Dubai chocolate" from the Gulf city itself.
He complained to the court about supermarket chain Aldi Süd stocking "Alyan Dubai Handmade Chocolate", which is actually produced in Turkey.
Siding with Wilmers, the court ruled that "the average consumer would take 'Dubai Handmade Chocolate', as the phrase appears, to mean that the chocolate was manufactured in Dubai".
"The 'Origin: Turkey' label on the reverse side is not suitable to clear up this misunderstanding", it added, pointing to its position and "small font size".
The court also ordered Aldi Sued to pay costs.
Wilmers said he was alerted to various imitation products after customers had started complaining about the taste of the treats.
"If you see 'Dubai Handmade Chocolate' on a chocolate bar that is actually mass-produced in Turkey, that is simply unacceptable", he told AFP, adding that he thinks wording such as "'Dubai style' or something along those lines would be fine".
Aldi Süd told AFP that it could not comment on what it termed "ongoing proceedings".
Wilmers said he had also begun proceedings against a Swiss chocolate maker, which then changed the packaging on their Dubai-style product, and was exploring action against another German supermarket chain after its refusal to stop selling a similar Dubai-style product.
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