Spain’s Council of Ministers has approved a draft law that could fine AI companies up to €35 million or 7% of their global turnover for failing to properly label AI-generated content, aiming to combat deepfakes and misinformation. The bill, which aligns with the EU AI Act, classifies incorrect labeling as a serious offense, with smaller penalties for startups and medium-sized businesses.
Digital Transformation Minister Oscar López emphasized the law’s focus on using AI for positive applications like medical research and disaster prevention, rather than spreading hoaxes. The draft also bans manipulative practices, such as subliminal techniques and AI systems that classify individuals based on race, religion, or other sensitive data.
Additionally, the bill allows the government to temporarily withdraw AI systems linked to serious incidents, such as fatalities. The legislation now awaits approval from Spain’s Congress of Deputies before becoming law.
AI News Monitor 
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