The threats were made following the Queen and Palace issuing statements regarding "Megxit" - which will see the couple ditch their HRH titles and no longer act as "working royals".
And according to The Times, the split sparked fears the couple could "embarrass" the royal family with their new commercial arrangements.
Senior royals were said to be concerned by stories circulating the media about Meghan signing up to represent luxury fashion brand Givenchy - which sources close to the couple deny.
The Times' source said: “It is understandable that if in this new model you get to go out and make money, that there are questions around ‘What does that mean? What is it? What will you do?’ ”
The Queen wanted to hammer home to Meg and Harry that they can't exploit their royal connections.
It's thought Meg and Harry were so keen to head off they agreed to the Queen's terms on the spot - but are now face an uncertain future over they Royal branding which is set to rake in billions.
“Now their Sussex Royal branding is causing a great deal of issues" a source told The Mirror.
Shortly before the split the couple registered the name with intellectual property firms and trademarked more than 100 items from books to stationary and T-shirts to bandanas.
One top talent manager, Jonathan Shalit pegged the pair to become a billion dollar brand.
And others have likened the couple's potential to that of the Kardashians and Beckhams.
The couple have 10.8 million followers on their Instagram - which is where they announced their desire to "step back" as senior royals, allegedly to the Queen's surprise.
machibet777.com