Mark Burstein, Fredric Horowitz and Jeanne Vonhof issued their decision a day after hearing arguments.
Despite the defeat, Fried matched the $13.5 million Gerrit Cole won in 2019 as the highest decided by an arbitration panel.
Fried won a $6.85 million salary last year in arbitration instead of the team's $6.6 million proposal.
He followed former Atlanta teammate Dansby Swanson in going to a hearing in consecutive years. Swanson, a shortstop, lost in 2021 and won last year, then signed a $177 million, seven-year contract with the Chicago Cubs.
Fried, a 29-year-old left-hander, went 14-7 for the second straight season and lowered his ERA to 2.48 from 3.04 in 2021. Fried was a first-time All-Star last season, was second to Miami's Sandy Alcantara in Cy Young Award voting and was third in the National League in ERA behind Alcantara and Julio Urías with the Los Angeles Dodgers.
In 2021, Fried pitched six shutout innings in World Series Game 6 as the Braves won their first title since 1995.