Italy’s competition authority said today it had fined Europe’s largest budget airline Ryanair €256m for abuse of a dominant position in its dealings with travel agents.
The regulator said the airline allegedly blocked or made it more difficult – economically or technically – for travel agencies to offer Ryanair flights in combination with other airlines or other services.
The authority said it took issue with the airline initially introducing facial recognition procedures, then blocking payments from online travel agencies (OTAs) and, finally, imposing partnership agreements with travel agents limiting their ability to offer Ryanair in travel packages.
“Its dominant position stems not only from its significant market share, which is continuing to grow, but also from numerous other indicators… (which) contribute to giving Ryanair (a) significant market power and the ability to act independently of competitors and consumers,” the watchdog said in a statement.
The alleged abuse of a dominant position took place from April 2023 to at least April of this year, the regulator added.
Ryanair said it would appeal the Italian ruling, describing it as “bizarre” and “unsound”. It added that it disputed the claims.
The airline said the regulator’s decision is legally flawed and inconsistent with previous court rulings.
“Ryanair maintains that its distribution agreements promote price transparency and protect consumers from overcharging by certain OTAs,” it added.
Ryanair’s CEO Michael O’Leary said that if today’s “legally unsound” AGCM Ruling and fine is not appealed, then the AGCM proposes to set itself above the Milan Courts in making competition decisions.
“Ryanair has fought for many years for transparent pricing, and our approved OTA agreements (which have been agreed by almost every large OTA, with the notable exception of one Spanish OTA) are manifestly and clearly pro-consumer,” Michael O’Leary said.
“Today’s AGCM ruling is both legally unsound, and it contradicts the Precedent Milan Court Ruling of January 2024, which declared that Ryanair’s direct distribution model ‘undoubtedly benefits consumers’,” the CEO added.
“This AGCM ruling is an affront to the Precedent Milan Court Ruling, and also an affront to consumer protection and competition law,” he said.
“Ryanair has grown rapidly in Italy – and in many other markets across Europe – by always offering the lowest air fares in every single market in which we operate. This legally baseless AGCM ruling, and its absurd €256m fine, undermines consumer protection and competition law, and it will be overturned on appeal,” he added.
