Indeed that happened in Italia 90.
Holland and Ireland finished exactly equal in their group, so lots were drawn to see who got who in the second round. Holland got West Germany (with Frank Rijkaard spitting at Rudi Voeller) and Ireland got Romania (with David O'Leary scoring the winning penalty in the shootout).
Wasn't that different though? Didn't they have a "X highest placed losers" go through that year from a few groups?
What would happen if two teams tied for 2nd this yr?