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I think it's just one of those cases where it can't be overruled simply because there actually is contact to justify the foul. That makes it not a clear and obvious mistake. If Sterling didn't actually get touched it would be reverted.
I wouldn't have given it because of how soft it is but I see why they went with it. Kind of surprised they didn't ask the ref to see the replay though, at least from the angles we were shown on TV it didn't look obvious that he was touched.
Not as it's phrased in the rules no. It wasn't an obvious mistake from the refs POV.
I'm am also very anti var ,but Denmark didn't lose because of it