Kate Middleton is furious over the release of topless pics taken while on vacation with Prince William in France ... and now the Royal Family is threatening to sue someone's ass over it.
The pics -- published by the French magazine Closer -- show Kate taking off her bikini top while hanging out with William last week at a chateau owned by the Queen's nephew, Lord Linley.
Moments after the pic went public, the Royal Family issued a scathing statement ... saying "Their royal highnesses have been hugely saddened to learn that a French publication and a photographer have invaded their privacy in such a grotesque and totally unjustifiable manner."
In the statement, the Royal Fam said the incident is "reminiscent of the worst excesses of the press and paparazzi during the life of Diana, Princess of Wales" ... who died in a car crash while fleeing from the paparazzi in France back in 1997.
The Royal statement continued, "Their royal highnesses had every expectation of privacy in the remote house. It is unthinkable that anyone should take such photographs, let alone publish them."