Lyon settled for the second behind City and secured the final last-16 spot after playing to a 1-1 draw with Shakhtar Donetsk in Kiev thanks to a second-half goal from Nabil Fekir.
Real Madrid suffered their worst ever defeat in the Champions League when they were beaten 3-0 in the Santiago Bernabeu Stadium by CSKA Moscow.
The Russians had beaten Madrid 1-0 in Moscow earlier in the competition, but were not expected to do the same in Madrid's home ground.
Real Madrid still finish top of their group, but Viktoria Plzen's 2-1 win over Roma means that CSKA Moscow fail to qualify for the Europa League despite their win.
Bayern Munich topped Group E despite being held to a 3-3 draw by Ajax in a match that saw two red cards and two penalties.
Robert Lewandowski gave Bayern the lead but Dusan Tadic equalized. Maximilian Wober was sent off for Ajax, with Bayern's Thomas Muller dismissed for kicking Nicolas Tagliafico's head.
Tadic then put Ajax ahead with an 82nd-minute penalty, but there were three goals to come. Lewandowski scored a spot-kick with Bayern's Kingsley Coman netting before Tagliafico levelled the score five minutes into the stoppage time.
Bayern topped Group E with the draw, although Ajax would have overtaken them if they had held on to their 2-1 lead.
In the group's other match, Benfica beat AEK Athens 1-0.
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