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Italy’s competition authority imposed a €255 million (~$300 million) fine on Ryanair. It ruled that the low-cost carrier engaged in abusive practices that restricted travel agencies from selling its flights in combination with other travel services. The decision follows a lengthy investigation by the Autorità Garante della Concorrenza e del Mercato (AGCM), which concluded that Ryanair used its market power to limit consumer choice and undermine competition in Italy’s travel sector.
According to the AGCM, Ryanair’s conduct included implementing facial-recognition requirements for bookings through online travel agencies (OTAs), blocking payment systems used by those agencies, and forcing intermediaries into restrictive partnership agreements. Regulators argued that these measures made it technically or economically difficult for agencies to sell Ryanair flights or package them with services from other airlines, hotels, or tour providers.
The watchdog said the airline’s strategy ultimately harmed consumers by reducing the availability of competitive travel packages. It also limited the ability of travel agents to offer comprehensive services that include Ryanair flights. Ryanair sharply rejected the ruling, calling it “bizarre” and “unsound.” The carrier defended its direct-sales model and insisted that it delivers lower fares and greater transparency for passengers. The airline said it would appeal the decision immediately. It further contended that the AGCM is attempting to overturn a prior Milan court ruling that deemed Ryanair’s approach lawful and consumer-friendly.
Italy is one of Ryanair’s most important markets and the AGCM emphasized that the airline’s large market share gives it an outsized influence over the distribution of air travel in the country. Regulators said that dominance places a responsibility on the carrier to avoid actions that unfairly limit competition. They argue that Ryanair failed to meet this obligation.
The fine marks one of the largest penalties ever imposed on a European airline over distribution practices and underscores ongoing tension between low-cost carriers and traditional travel intermediaries.
Anthony’s Take: Some might say that Ryanair deserves the fine as they are bitter at being nickel and dimed by the airline for years. The appeal is expected to be lengthy and the outcome could have significant implications for how airlines across Europe manage relationships with OTAs and tour operators.
(Image Credits: Ryanair.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
1 comment
Ryanair plays these games even on booking not through OTAs. I recently booked a few flights direct with Ryanair from a USA based IP. A few days later my booking was locked unless I paid for their additional Facial-recognition verification