Defending Champions Real Madrid suffered a surprise home defeat vy AC Milan at the Santiago Bernabeu.
Madrid have fallen to back-to-back home defeats and have lost two of their first four games in the Champions League.
Vinicius Junior’s penalty equalised for Madrid after Malick Thiaw’s opener, but strikes from Alvaro Morata and Tijjani Reijnders secured a deserved victory for Milan.
Madrid have now lost their past two games after being beaten by rivals Barcelona 4-0 in El Clasico, who they now trail by nine points in La Liga.
And Ancelotti’s reigning European champions have only six points from four games in the Champions League, following their defeat at Lille in October.
Elsewhere Luis Diaz scored a hat-trick as Liverpool defeated Bayer Leverkusen 4-0
Xabi Alonso remains a hugely popular figure at Liverpool after winning the Champions League in 2005 and was heavily touted to succeed Jurgen Klopp this summer until he decided to stay in Germany.
Arne Slot was eventually appointed and his outstanding start continued as Liverpool once again recovered from a sluggish first half to overwhelm Leverkusen, who had controlled them comfortably before the break.
The win means Liverpool stay at the top of the new Champions League format standings with a maximum 12 points from four games.