The technology "does not appear to be necessary to protect the engine against damage or accident and to ensure safe operation of the vehicle," said Advocate General Eleanor Sharpston of the EU's Court of Justice.
The court is not bound by the conclusions of the Advocate General, although in the majority of cases it follows them.
Denying one of the carmakers central arguments, Sharpston said "the objective of slowing down the ageing or the clogging-up of the engine does not justify the use of a defeat device."
The case was referred to the EU highest court by French justice authorities conducting a fraud investigation after complaints by consumers.
The Volkswagen group admitted in 2015 that it had equipped 11 million of its diesel vehicles with software capable of distorting the results of anti-pollution tests and concealed emissions that sometimes exceeded authorised standards as much as 40 times.
The "Dieselgate" scandal, which has led to legal action in several countries, has already cost the German manufacturer 30 billion euros in court decisions and other costs.
"If the court were to confirm this opinion, it would force professionals in the sector to change their practices and finally offer fair compensation to their consumers," said Charles Constantin-Vallet, a lawyer for car owners in France who are taking part in the proceedings.
This is the second case stemming from Dieselgate working its way through the EU court.
Decisions in both cases are expected within six months.
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