The Brazilian defender produced a very high challenge on Marouane Fellaini late in the first half at Stamford Bridge which forced the Belgian midfielder off at half-time.
Sky Sports pundits Souness, Henry and Neville all suggested Luiz should have received a straight red card but Chelsea boss Antonio Conte admitted he did not see the incident.
“That’s not a difficult decision to make,” Souness said on Super Sunday.
“The referee has a full view of it. Does he not see six studs showing? He’s seen something so he gives him a yellow card.
“By the shape of David Luiz going for the ball that is extremely high. It’s a red card.
“Martin Atkinson has completely bottled it.”
Henry added: “It’s massive. It was a bit strange for me.
“Obviously we have the replays, but the referee has a great view of it and that’s a red.”
While Neville also chimed in: “I think it was a red card and he was very lucky to stay on the pitch.
“Obviously it would have had an impact on this game and will be, I suppose, one reason Jose Mourinho could give, but I can’t think he will deflect too much away from his team today.”
However, Conte could not make a judgement as he was unsighted at the time.
The Italian said: “I believed David Luiz played a fantastic game and I do not know if he deserved a red card or yellow, he is a honest player but I did not see the incident.”