FIFA has fined world champions Spain $20,000 over Islamophobic chants by supporters during a friendly against Egypt earlier this year.
The chants were heard during Spain's 0-0 draw with Egypt at Espanyol's RCDE Stadium in Barcelona on 31 March.
Sections of the crowd chanted "Whoever doesn't jump is Muslim", while Egypt's national anthem was also jeered before kick-off.
Spain winger Lamine Yamal, who is Muslim, condemned the chants after the match as disrespectful and intolerable.
"Using a religion as a taunt on the field makes you look ignorant and racist," he said.
FIFA said its appeals committee had upheld the sanction following an earlier ruling by its disciplinary committee.
The Spanish Football Federation has been ordered to pay a $20,000 fine and must also close at least 15% of the seating at Spain's next home friendly.
FIFA said the affected seats could instead be allocated to groups including families, students and anti-discrimination organisations.
The governing body's disciplinary judges said "harsh sanctions were necessary", while acknowledging that it was the Spanish federation's first offence and that officials had acted quickly after the chants began.
Stadium announcements were made during the match calling on supporters to stop discriminatory behaviour.
The Spanish federation also condemned the chants and co-operated with authorities seeking to identify those responsible.
Spanish police opened an investigation the following day into what they described as "Islamophobic and xenophobic" chanting.
The incident came amid wider debate over racism and discrimination in football. FIFA's current anti-racism framework includes a crossed-arm gesture allowing players and officials to report racist abuse during matches.
FIFA rejected the Spanish federation's argument that the word "Muslim" was not inherently insulting, ruling that otherwise neutral language can become discriminatory when used as a taunt or marker of inferiority.
The federation said on Friday that it considered the punishment disproportionately severe and would appeal to the Court of Arbitration for Sport.
FIFA has also imposed sanctions elsewhere this year for breaches of anti-discrimination rules, including a fine against the Israeli Football Association over its handling of racist behaviour by Beitar Jerusalem supporters.
The March incident came before Spain went on to win the 2026 World Cup, defeating Argentina in the final in July.
The Egypt match had already drawn wider attention to anti-Muslim sentiment in European football, an issue TNA has examined in the context of the growing far-right backlash against Muslim players and supporters.