SNP opposition in Glasgow had tabled a motion for a full council debate on Atos's involvement.
The company hit the headlines for its fitness-to-work tests for people signed off work due to ill health and disability.
But the motion was defeated, sparking campaigners in the public gallery to shout and throw Monopoly money onto the chamber floor in protest at the decision.
The furore led to the meeting being suspended by the Lord Provost and the arrest of one man.
Archie Graham, the council's political lead on the Commonwealth Games said: "The council can't on its own change the fact that Atos is a Games sponsor."