The Chinatown filmmaker was taken into custody by Swiss officials on Sept. 26 in connection with a 31-year-old child-sex case.
Polanski, who was due to collect a top honor at the film festival, is now fighting extradition to the U.S. to face sentencing for having unlawful sexual intercourse with a minor -- a charge he pleaded guilty to before fleeing to France in 1978.
A host of his Hollywood pals have come out in defense of Polanski, and Kounen showed his support for the controversial director by withdrawing his movie from the festival's lineup.
The film, about a 1920s love affair between the French fashion designer and Russian composer Stravinsky, was due to be screened on Friday night, but the showing was pulled at Kounen's request, festival spokeswoman Nadja Schildknecht confirmed.
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