To many Italian fans, 2 Dutch players were clearly offside when the ball was played toward the goal. The rule says that at least 2 defenders or the ball has to be closer to the goal line than the first offensive player when the pass is made. However a defender cannot leave the field to play a striker offside, and one of the Italian defenders was knocked down behind the line. This made the Dutch players onside in the Judgement of the official.  

The rule leaves room for interpretation, but that was a beautiful call. I used to ref soccer for youth leagues in high school, but I'm not sure I would have gotten this call right. My hat is off to the ref and line officials.

I still have a hard time explaining the offsides call to non-soccer folks. So, I thought this would be a good time to show a highlight that illustrates the issue really well. The commentary is in German (I think?), but just watch the first 45 seconds and you will get the picture. It may have been different if the defender was pushed out by an offensive player, but it was his own goalie.