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(Sharecast News) - The Italian competition authority said on Tuesday that it has fined Ryanair 255.7m for abuse of a dominant position.
The regulator said that between April 2023 and "at least" April 2025, the budget airline put in place "an elaborate strategy" which affected the ability of online and traditional travel agencies to buy Ryanair flights on ryanair.com.
"In particular, the company's strategy blocked, hindered or made such purchases more difficult and/or economically or technically burdensome when combined with flights operated by other carriers and/or other tourism and insurance services," it said.
An investigation by the ICA found that at the end of 2022, Ryanair began to explore ways to hinder travel agencies.
At first, the airline rolled out facial recognition procedures on its website aimed at users who purchased their ticket through a travel agency. At the end of 2023, when the authority's investigation was underway, Ryanair totally or intermittently blocked booking attempts by travel agencies on its website.
The third phase of the airline's strategy, in early 2024, saw Ryanair impose partnership agreements on OTAs and Travel Agent Direct accounts on traditional agencies, containing terms that restricted agencies from offering Ryanair flights in combination with other services.
"To 'persuade' agencies to partner up, Ryanair periodically blocked bookings and launched an aggressive communication campaign against non-signatory OTAs, labelling them 'pirate OTAs'," it said.
The ICA said Ryanair's conduct weakened competition from agencies, both directly and indirectly, and in turn reduced the quality and range of tourism services available to consumers.
Ryanair said in a statement that it will "immediately appeal" the "legally flawed" ruling by the ICA.
Chief executive Michael O'Leary said: "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, who continues to overcharge its customers for flights and ancillary services) are manifestly and clearly pro-consumer.
"When Ryanair first started in 1985, 20% of ticket revenues were wasted paying travel agents 10% commissions, and GDS systems 10% commissions, in an industry with high fares, but profit margins of less than 1%. The internet and the ryanair.com website have enabled Ryanair to distribute directly to consumers, and Ryanair has passed on these 20% cost savings in the form of the lowest air fares in Italy and Europe. 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."
O'Leary said the ruling was "an affront" to consumer protection and competition law.
"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," said O'Leary. "This legally baseless AGCM Ruling, and its absurd 256m fine, undermines consumer protection and competition law, and it will be overturned on appeal."