The Israeli prime minister withdrew his bid for immunity, saying the proceedings would have been a circus.
His case will move forward to trial, but could take months or years.
In a statement, Mr Netanyahu said:"In this fateful hour for the people of Israel, when I am in the United States on a historic mission to design the permanent borders of Israel and ensure our security for decades to come, the Knesset is expected to start another spectacle in the circus of removing immunity.
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