Blackburn suffered a second consecutive 2-1 defeat at the Festival of Football as AEK Athens emerged triumphant on a rainy night in Sydney.
Ignacio Scocco and Nikos Lyberopoulos netted in the space of three minutes midway through the first half to set up the Greek side's victory.
Rovers, who also went down 2-1 to Rangers in their opening game on Sunday, pulled a goal back late on through centre-back Phil Jones but it was more than they deserved in a match completely dominated by AEK.
The diabolical conditions meant only a small crowd turned up but they were treated to some good football for most of the 90 minutes, especially from the Greeks.
It was AEK's second win in as many games in the tournament, meaning a draw with Scottish champions Rangers on Sunday will assure them top spot in the table.