Officers prevented Jules Mattsson - then 15 - from taking pictures at a military parade in Romford, east London, in June 2010.
The Metropolitan Police said compensation had been paid and an apology issued.
Law firm Bindmans, which represented the youngster, said a police inspector had described photographing in public as 'anti-social behaviour'.
'On 26 June 2010, (Jules), at the time a 15-year-old student, was photographing the Armed Forces Day parade in Romford,' said a spokesman for Bindmans. More
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