FIFA has sanctioned the Spanish Football Federation (RFEF) following Islamophobic chants by supporters during a friendly match between Spain and Egypt in March, the governing body announced.
Spain have been fined $20,000 and ordered to partially close their stadium for their next friendly after fans twice chanted "Who doesn't jump is a Muslim" during the World Cup warm-up match, which ended in a 0-0 draw.
The incidents took place at the RCDE Stadium near Barcelona, home of LaLiga club Espanyol, which hosted the fixture.
After the chant was repeated a second time, the stadium announcer issued a warning and the scoreboard displayed a message against discriminatory behaviour.
Spain winger Lamine Yamal, who is Muslim, condemned the chants at the time, describing them as disrespectful and intolerable and calling those responsible "ignorant and racist."
Spanish police launched an investigation the following day, while FIFA subsequently opened disciplinary proceedings against the RFEF.
The federation argued in its defence that the word "Muslim" was "neither insulting nor pejorative," adding that the fans' conduct should be assessed under FIFA's Article 17, which covers political, ideological, religious or offensive messages, rather than Article 15, which deals with discrimination and racist abuse.
FIFA's disciplinary committee rejected that argument. It ruled that Article 15 does not require the explicit use of a slur and that a term can be discriminatory when used in context as "an insult, taunt, or marker of inferiority."
As a result, FIFA fined the RFEF and ordered the closure of at least 15% of available seats for Spain's next friendly match.