Spain Unveils Strict AI Content Rules with €35M Fines for Unlabeled Material

Spain’s government has approved groundbreaking legislation that will impose substantial fines on companies failing to properly label AI-generated content, marking one of the European Union’s first comprehensive national regulations targeting artificial intelligence and deepfakes.Close-up view of a man’s animated 3D face model displayed on a smartphone screen, demonstrating realistic facial animation and rendering technology.

Under the new bill, companies could face penalties of up to €35 million or 7 percent of their global annual turnover for not properly identifying content created by artificial intelligence. The legislation classifies such violations as “serious offences” and establishes strict transparency requirements for AI-generated materials.

The law accords with the broader EU AI Act, which recently began its initial enforcement phase implementing comprehensive regulations for artificial intelligence systems across Europe. Spain’s legislation goes further by introducing specific penalties and enforcement mechanisms at the national level.

“AI is a very powerful tool that can be used to improve our lives … or to spread misinformation and attack democracy,” said Digital Transformation Minister Oscar Lopez, emphasizing that “anyone can be a victim of deepfakes.”

The legislation creates AESIA, a new supervisory agency responsible for enforcing AI regulations, while sector-specific regulators will oversee privacy, financial markets, and law enforcement concerns. The bill also includes provisions prohibiting the use of subliminal techniques to manipulate vulnerable groups and restricts AI-driven biometric profiling.

This regulatory approach reflects growing concerns about AI safety and ethics, following calls from civil rights groups for stronger AI oversight and human rights protections in European AI legislation. Spain’s framework represents a more stringent approach compared to the United States, which currently relies primarily on voluntary compliance measures.

The legislation must still pass through Spain’s lower house before becoming law. Once enacted, it will position Spain among the first EU member states to implement comprehensive national AI regulations with specific enforcement mechanisms.

Sources: Reuters, PYMNTS, Digital Watch

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March 12, 2025 – by Cass Kennedy