Ryanair Slapped With Quarter-Billion Euro Fine in Italy Over 'Abusive Strategy' Against Travel Agencies
Rome, Italy – Europe's largest low-cost carrier, Ryanair, has been dealt a staggering blow by Italian antitrust authorities, facing a fine of €255.8 million ($300.19 million USD) for what regulators describe as an "abusive strategy" aimed at stifling competition and monopolizing ticket sales. The landmark decision, announced Tuesday by the Italian Competition Authority (AGCM), concludes a thorough investigation into the airline's practices, which allegedly created significant barriers for both online and traditional travel agencies attempting to sell Ryanair flights. The ruling underscores a growing concern among European regulators regarding the market power exerted by dominant digital platforms and their impact on consumer choice and fair competition.
The AGCM's Decisive Ruling
The Italian Competition Authority's investigation culminated in the finding that Ryanair DAC and its parent company, Ryanair Holdings plc, engaged in an abuse of their dominant market position within the Italian and European passenger air transport sectors to and from Italy. With a substantial market share hovering between 38% and 40% of passengers carried across all routes connected to Italy, the AGCM determined that Ryanair possessed significant market power, enabling it to act largely independently of its competitors and consumers. This dominant standing, according to the regulator, provided the airline with the leverage to implement strategies that unfairly disadvantaged travel agencies. The reported abusive conduct commenced in April 2023 and persisted for at least two years, through April 2025.
An "Elaborate Strategy" to Control Distribution
At the core of the AGCM's accusations is an "elaborate strategy" deployed by Ryanair designed to channel all ticket sales directly through its proprietary website, ryanair.com. This approach effectively blocked, hindered, or rendered economically or technically burdensome the ability of online travel agencies (OTAs) and traditional travel agencies to purchase and resell Ryanair's flights. Regulators detailed a series of tactics employed by the airline, including the introduction of facial recognition procedures for customers who had purchased tickets via third-party platforms. Furthermore, Ryanair allegedly blocked payment methods frequently utilized by online travel agencies and, in some instances, even "mass-deleted" travel agency accounts and intermittently obstructed booking attempts. The airline also reportedly imposed restrictive "partnership agreements" on agencies, effectively banning them from selling Ryanair tickets outside of tightly controlled parameters. These measures, the AGCM contended, went beyond legitimate business practices, instead constituting an attempt to reduce the competitive capacity of online agencies.
Implications for Competition and Consumer Choice
The ramifications of Ryanair's alleged strategy extend beyond mere commercial disputes with travel agencies. The AGCM highlighted that these actions ultimately limited consumer choice and diminished competition across the travel distribution market. By making it arduous for agencies to combine Ryanair flights with those of other carriers or to bundle them with additional tourism and insurance services, the airline effectively curtailed the comprehensive offerings available to travelers. This, in turn, funneled consumers towards Ryanair's official website, thereby limiting their ability to compare prices and access diverse travel packages. The regulator emphasized that the practices compromised the ability of agencies to operate effectively, creating significant economic consequences, particularly for the short-haul holiday and package segment. Numerous travel agencies reported difficulties, with customers often forced to manage check-ins, flight changes, and assistance directly with Ryanair, even after purchasing through an intermediary.
Ryanair's Rejection and History of Italian Scrutiny
In response to the substantial fine, Ryanair has vehemently rejected the AGCM's ruling, with CEO Michael O'Leary characterizing it as "legally unsound" and "absurd." The airline has announced its intention to appeal the decision, asserting that its direct distribution model "undoubtedly benefits consumers" and was previously upheld by a Milan Court ruling in January 2024. Ryanair has consistently maintained that its strategy is aimed at offering the lowest possible fares by encouraging direct bookings on its website.
This is not the first time Ryanair has found itself in the crosshairs of Italian regulators. In 2018, Italy's competitions watchdog initiated an inquiry into Ryanair's decision to charge passengers for hand luggage, deeming it an "essential element of transport" that should be included in the ticket price. The following year, in February 2019, the AGCM imposed a €3 million fine on Ryanair over its "non-transparent" cabin baggage policy, ruling it an unfair trade practice. Ryanair, at the time, also rejected that decision, arguing its policy was transparent and improved flight punctuality.
An Ongoing Battle for Market Control
The latest and significantly larger fine imposed by Italian authorities marks a critical juncture in the ongoing battle between dominant airlines and regulatory bodies seeking to ensure fair competition within the travel industry. The AGCM's ruling sends a strong signal that practices perceived as leveraging market dominance to the detriment of intermediaries and consumer choice will be met with severe penalties. As Ryanair prepares its appeal, the decision's ultimate outcome could have far-reaching implications, not only for the airline's operations in Italy but also for the broader landscape of online travel distribution across Europe. The case underscores the complexities of regulating an evolving digital marketplace where powerful players constantly seek to optimize their business models, often leading to clashes over competitive fairness and consumer welfare.
