Italy’s competition watchdog has fined low-cost airline Ryanair €256 million ($302 million) for what it describes as an abusive strategy that restricted travel agencies’ access to the airline’s services. The penalty, announced by the Italian Competition Authority (AGCM), applies to Ryanair DAC and its parent company, Ryanair Holdings PLC, and relates to practices observed from April 2023 until at least April this year.
The AGCM said Ryanair complicated the process for online and traditional travel agencies to purchase flights through its website, particularly when bookings were combined with flights operated by other carriers or with additional tourism and insurance services. Ryanair has confirmed it will appeal the decision, calling the ruling and fine legally flawed.
Booking access under scrutiny
According to the watchdog, the investigation found that Ryanair implemented measures that made it harder for intermediaries to sell its flights. “Following a complex investigation, the Authority found that Ryanair put in place an elaborate strategy affecting the ability of online and traditional travel agencies to purchase Ryanair flights on ryanair.com,” the AGCM said in a statement.
The authority added that the airline’s approach “blocked, hindered or made such purchases more difficult and/or economically or technically burdensome”. These obstacles were particularly evident when Ryanair flights were offered alongside those of other airlines or bundled with additional travel services, limiting how agencies could package and sell trips to consumers.
The AGCM concluded that, at least until the integration of application programming interfaces (APIs), Ryanair’s conduct reduced the ability of travel agencies and online travel agencies (OTAs) to compete effectively. “Therefore, the Authority concluded that, at least until the integration of APIs, Ryanair’s conduct could and did in fact hinder travel agencies’ sales and affect OTAs’ ability to attract internet traffic,” it said.
Ryanair rejects the ruling and prepares appeal
Ryanair responded swiftly, announcing that it would challenge the decision in court. In a statement, the airline said it had instructed its lawyers to appeal what it described as an unjust ruling. “Ryanair, Europe’s No.1 airline, today (Tues, 23 Dec) instructed its lawyers to immediately appeal both the bizarre/unsound ruling and the €256m fine, unjustly levied by the Italian Competition Authority (AGCM),” the carrier said.
The airline argued that the watchdog’s decision contradicts a January 2024 ruling by the Milan Court, which supported Ryanair’s direct distribution model. That judgment declared the model “undoubtedly benefits consumers” and results in “competitive fares,” according to Ryanair.
Ryanair also rejected claims that it holds a dominant position in air services to and from Italy, saying the authority’s findings would be overturned on appeal. “The AGCM’s baseless efforts to redefine a period of time after the Milan Court Ruling and to wrongly claim that Ryanair has a dominant position in air services to/from Italy will be overturned,” the airline said, adding that the fine “will be overturned on appeal”.
The case highlights ongoing tension between airlines seeking to maintain direct relationships with customers and regulators aiming to ensure fair access for intermediaries. For travellers, the outcome could influence how flights are priced, bundled and distributed across booking platforms in one of Europe’s busiest aviation markets.
