The 2022 Winter Olympics are quickly becoming the Games no-one wants as the latest withdrawal left just two cities in the race.
Beijing and Almaty, Kazakhstan, are the only remaining cities after four pulled out so far.
The Norwegian government rejected financial backing for the project on Wednesday, worried the Games would be too costly.
It comes after the 2014 Games in Sochi reportedly cost the Russian government $51billion.
In a statement, IOC executive director of the Olympic Games, Christophe Dubi, said senior Norwegian politicians failed to be briefed properly.
"Earlier this year the Norwegian bid team asked for a meeting with the IOC for an explanation of all aspects of the IOC requirements, including the financial details," he said.
"And the IOC arranged this for all three bid cities in order to ensure fair play amongst the three bids.
"Unfortunately, Oslo sent neither a senior member of the bid team nor a government official to this meeting.
"For this reason senior politicians in Norway appear not to have been properly briefed on the process and were left to take their decisions on the basis of half-truths and factual inaccuracies."
The IOC said it would invest $880million and national sponsorship rights would almost certainly have delivered more than the $181m estimated by the bid.
It said Vancouver 2010 and Sochi had broken even or made a profit.