Pep Guardiola’s men were looking to close a five-point gap between them and the champions at the Etihad. However, it was Liverpool who took the lead.
Mohammed Salah slammed his penalty past Ederson to make it 1-0.
De Bruyne set up Gabriel Jesus to finish confidently and make it 1-1, before missing from the spot after Joe Gomez was adjudged to have handled the ball.
The result sees City in 11th place with 12 points, while Liverpool are third with 17 points.
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