They had been charged with murder and conspiracy to murder, as South Africa does not have a specific charge of cannibalism. Prosecutors told a court in the town of Estcourt that the charges against the three had been provisionally withdrawn, and they may or may not be re-instated at a later stage.
AFP news agency however says the three had been acquitted because of a lack of evidence while four other men charged with them remained in police custody.
Police fired rubber bullets and stun grenades to disperse crowds of people who hurled insults at the accused as they appeared in court.
The seven were arrested after police said one of them walked into a police station in August with a leg and a hand, and said he was tired of eating human flesh.
Get more stories like this on Twitter & Facebook