Croatia were also fined £50,000 for the conduct of their fans, who set off fireworks and hurled missiles on to the pitch during the 5-1 victory over the Scandinavians in Zagreb.
“I regret it, it was a shock for all of us,” Croatia’s Football Federation president Davor Suker said after a meeting of the Federation’s executive committee.
Suker added that he thought the chances of a successful appeal were “very slim”.
“We know what would be the next punishment – revoking of points and being kicked out from competition,” the former Real Madrid, Arsenal and West Ham striker warned.
“It is not about paying of fines, but about Croatia’s image.”
After five games, Croatia are currently top of Group H with 13 points, two ahead of Italy, with third-placed Norway a further two points adrift.