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UEFA president Aleksander Ceferin said his organisation could not give in to "populist" demands from politicians but Germany said the football body sent the "wrong message".
EU chief Ursula von der Leyen slammed as a disgrace the law passed by Viktor Orban's government banning the "promotion" of homosexuality to minors, prompting an immediate slap down from Budapest against her comments as "a shame".
When the doors opened earlier to the stadium, German activists wearing vests emblazoned with the logo "rainbow to go" were handing out rainbow flags to fans.
It added a rainbow to its logo and in a statement said it was "proud to wear the colours of the rainbow" but underlined its refusal of Munich's request.
Munich city authorities had planned to light the Allianz stadium up in rainbow colours during Germany's match against Hungary to "send a visible sign of solidarity" with Hungary's LGBTQ community.
But Hungary fan Csongor, 39, said the rainbow had "nothing to do with football...
We feel that this is a campaign against Hungary, against the Hungarian national team, against the Hungarian government." At government question time in parliament, Chancellor Angela Merkel added to critical voices including from France, saying she considered the law to be "wrong and incompatible with my understanding of politics"..
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