The 49-year-old, who was in a Range Rover, suffered head injuries in the incident near junction 6a in Hertfordshire on 16 May.
A Hertfordshire Police spokeswoman said he may have faced prosecution for not wearing a seatbelt.
She added that in relation to the incident "no further action will be taken".
The singer could not be reached for comment.
Michael was airlifted to a specialist trauma centre in London following the accident and spent nearly two weeks in hospital before being discharged.
Hertfordshire Police said officers were unaware of any damage to the Range Rover and confirmed no other vehicles were involved.
The former Wham! star was travelling as a rear seat passenger.
In September 2010, he received an eight-week prison sentence after crashing his Range Rover into a shop in north London.
He was also banned from driving for five years after admitting driving under the influence of drugs and possessing cannabis.
In 2006 he was banned from driving for two years and sentenced to 100 hours of community service after he was convicted of driving while unfit through drugs.
He had been found collapsed in his Mercedes.
Singer George Michael will not face legal action after falling from the rear of a vehicle travelling on the M1.