Leaders Real Madrid lost their first game in Spain’s La Liga this season, beaten 2-1 away to Espanyol yesterday.
Raul de Tomas gave Espanyol a 17th-minute lead when he converted Adrian Embarba’s low cross.
Aleix Vidal added an excellent second goal by beating Nacho before firing past goalkeeper, Thibaut Courtois in the 60th minute.
Karim Benzema responded for Real Madrid in the 71st minute with a fine finish into the bottom corner.
It was the second defeat in a week for Real Madrid, who suffered a shock Champions League defeat by competition debutants, Sheriff Tiraspol last Tuesday.
Real Madrid are now winless in three matches after being held to a goalless draw by Villarreal in their previous league game. They however stay top of the table, level on points with Atletico Madrid.