Unfortunately for Rockstar, the High Court sided with the BBFC. The VAC must now reconsider its appeal, which for all intents and purposes probably means, "Change your decision to agree with the BBFC, or else."
During the trial, the BBFC argued that the VAC's decision undermined the board's role as the watchdogs of entertainment. This may be true, but what is the point of having a Video Appeals Committee if it's not able to uphold appeals? This is also a huge blow to Rockstar, because it gives the company little hope of ever being able to sell the game in the UK.
Rockstar is also currently dealing with criticism in the UK for its new rendition of Bully, which is coming to the Wii and Xbox 360 later this year.
[Via Games Industry]