UEFA have ruled that referee Ovidiu Hategan did follow protocol when dealing with Yaya Toure's racism complaint against CSKA Moscow.
The Manchester City midfielder raised the issue with the official after being subjected to taunts from home supporters during the UEFA Champions League fixture between the two sides in Russia last week.
European football's governing body have a three-step plan to tackle racism, with the second being that a statement should be made over a public address system once a complaint has been levied to the referee, before potentially a match being abandoned if such instances continue.
But stage two was not adhered to during the game, leading to an investigation by UEFA into Hategan's actions.
However, a ruling on Wednesday found the Romanian official followed guidelines and that the UEFA venue director for the match had failed to act on the advice and has subsequently been removed from his position.
UEFA have issued sanctions against CSKA, with parts of the Arena Khimki set to be closed for their next home Champions League fixture against Bayern Munich on November 27.
On the Hategan situation, a statement on UEFA's website read: "The referee (Hategan) immediately asked the fourth official to request an announcement to be made to the public.
"The venue director (the UEFA officer in charge of football operations), who had not heard the chanting himself, did not activate the procedure. As the chanting had ceased, the referee decided to resume the game with the free-kick.
"The conclusion of the investigation is therefore that the referee had correctly triggered the first step of the procedure by requesting the stadium announcement.
"The venue director acted inappropriately, though in good faith, so causing the failure in the activation of the first step of the standard procedure, as decided by the referee.
"The UEFA venue director at the Arena Khimki has been relieved of his duties."
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