The referee waved play on after Ederson took out Ryan Fraser.
Alan Shearer says that the decision not to award a penalty to Ryan Fraser was a disgrace.
Ederson sprinted off his line and brought down Fraser as the City had taken a 2-0 lead.
Joao Cancelo came across to clear the ball, but neither the referee nor the video assistant referee thought it was a spot-kick.
Shearer said there was a problem with the people running the VAR.
He told the radio station that it was a terrible decision. The officials have been awful for a long time. I think there were many terrible decisions this season.
It wouldn't have made a difference because Manchester City are a fantastic team and deserved to win, but that decision was ridiculous.
What is happening?
The VAR ruling that Joao Moutinho had illegally blocked a cross from Bernardo Silva helped City's victory, even though it seemed to hit the Wolves player on the arm. The resulting penalty was converted into a goal by Raheem Sterling.
The one last weekend that City were given for the handball against Wolves was mentioned by Shearer. Look at the decision today or not. Someone is watching a screen on the VAR while an experienced referee watches.
If he can't tell the referee that a howler is, what is going on? It is a terrible decision.
The people running the VAR are my problem. They don't seem to be good enough. Mike Riley needs to have a chat with his boys because some of the decisions have been really poor.
The penalty given last week and the decision today, anyone could tell you they were wrong, and the VAR should intervene.
A stonewaller.
Howe said thatNewcastle did some things right.
Ruben Dias headed home an easy City opener, and Cancelo doubled the lead before half-time with a stunning strike, thanks to poor defending from Newcastle.
Defending champion City would be top of the table at Christmas thanks to further goals from Riyad and sterling.
Eddie Howe told Match of the Day that the Ryan Fraser incident was baffling and that the second goal was a poor one.
I am not sure what happened with the VAR and the referee, the goalkeeper wipes out Ryan and it is a stonewaller, a clear penalty.
Joao Cancelo had the ball, butFraser didn't have it, according to the City manager. If Fraser had the ball, it was a penalty, but Joao had it.