The club admitted a Football Association misconduct charge over the incident
Manchester City will have to pay a fine of £35,000 for failing to control their players in their Premier League draw with Liverpool earlier this month.
The club admitted a Football Association misconduct charge over the incident.
The charge had been accepted by City on Friday, five days after the fixture at the Etihad which had finished 1-1.
It came after several team members surrounded referee Michael Oliver when he awarded a second half penalty to Liverpool, which was subsequently converted by ex-Man City midfielder James Milner.
In a statement, the FA confirmed: "Following an Independent Regulatory Commission hearing today [Monday 27 March 2017], Manchester City have been fined £35,000 after the club admitted an FA misconduct charge.
"City breached FA Rule E20(a) in that in or around the 50th minute of the game against Liverpool on 19 March 2017, the club failed to ensure that its players conducted themselves in an orderly fashion."
The club are next in action against Arsenal in the Premier League this Sunday as it resumes following the current international break, with the fixture key to both teams' hopes of securing a Top Four finish in the table and, as a result, Champions League football for 2017-18.
City won the reverse fixture at the Etihad 2-1 in December.