[South40]

He took two steps before falling.

That matters not.

WHAT IS A CATCH?
Observers too often are fooled by a receiver having two feet down or what seems like possession for an eternity. If the receiver falls after the catch, he must hold on to the ball after hitting the ground or it is an incompletion.~Mike Pereira, the former NFL VP of officiating

http://nypost.com/2011/09/07/nfl-official-explains-tough-rules/

You may not like the rule, but it is a rule and thus, it was a good call.

[catfish1957]

he must hold on to the ball after hitting the ground or it is an incompletion.~

I have probably seen at least a 100 cases where refs have ruled "non-fumble" when down by contact after a reception. Doesn't that seem contradictory?