The magazine, "Choc," which means shock in French, must be withdrawn by May 22 for publishing a picture of Ilan Halimi taken by his captors.
Judge Phillipe Jean-Draeher says the "exceptional" attack on the feelings of Halimi's mother and sisters led to his ruling Wednesday.
The mother was awarded €20,000 ($27,380) and the sisters each €10,000 ($13,767) in damages.
The magazine must pay a €200 ($274) fine for every infraction.
Twenty-seven people are on trial in a case that has raised concerns about anti-Semitism. Halimi's family says he was killed because he was Jewish.
French authorities found 23-year-old Halimi naked, handcuffed and covered with burn marks near railroad tracks in the Essonne region south of Paris on Feb. 13, 2006.
He died on the way to the hospital after being held captive for more than three weeks, and was later buried in Israel.