The Italian Competition Authority (AGCM) has imposed a €256 million fine on Ryanair for “abuse of a dominant [market] position” after the low-cost airline reportedly restricted travel agencies from purchasing fares through its website between 2023 and 2025.
AGCM delivered its ruling in late December following a two-year-long investigation into the carrier’s direct distribution and sales tactics.
This included Ryanair’s highly-criticised online facial recognition verification processes, efforts to block bookings and payment methods connected to travel agencies, and restrictive agreements limiting agencies from bundling Ryanair flights with other services, according to the authority.
In a statement, the competition watchdog said such tactics “did in fact hinder agency sales… [and] impaired agencies’ ability to purchase Ryanair flights in order to combine them with flights of other carriers and/or additional tourism services, reducing direct and indirect competition exercised by the agencies themselves and, as a consequence, the quality and quantity of tourism services offered to consumers”.
According to AGCM, the Irish-based airline is responsible for between 38 and 40 per cent of total passengers on routes to and from Italy.
Ryanair has disputed AGCM's decision and instructed lawyers to immediately appeal the “bizarre” ruling and the €256 million fine. The airline argues that the judgment seeks to “ignore and overturn” a 2024 ruling by the Milan Court of Appeal that deemed Ryanair’s direct distribution model “undoubtedly benefits consumers” and leads to “competitive fares”.
In a statement, Ryanair CEO Michael O’Leary said: “This AGCM ruling is an affront to the precedent Milan Court ruling, and also an affront to consumer protection and competition law."
Ryanair claims AGCM issued the ruling “under pressure” from Spanish online travel agent eDreams Odigeo and a “tiny number” of bricks-and-mortar travel agencies in Italy.
“Both we and our lawyers, are confident that this flawed, gerrymandered AGCM ruling and its absurd €256m fine will be overturned on appeal," O’Leary said.