Ryanair has been hit with a massive €256 million (£224 million) fine by Italy’s competition watchdog for allegedly employing an "abusive strategy" to obstruct third-party travel agencies.
The Italian Competition Authority (AGCM) claims the budget airline intentionally complicated the process for agencies to purchase flights via its website, a practice observed from April 2023 until at least April this year.
In its ruling, the regulator stated:
"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.
“In particular, the company’s strategy blocked, hindered or made such purchases more difficult… when combined with flights operated by other carriers and/or other tourism and insurance services.”
“These practices compromised the ability of agencies to purchase Ryanair flights and combine them with flights from other airlines and/or additional travel services, thereby reducing direct and indirect competition between agencies,” it added.
Ryanair said it would appeal the ruling and the fine, which it said was “unjustly levied”.
The Dublin-based carrier said: “Ryanair has campaigned for many years to offer consumers the lowest fares by booking directly on the ryanair.com website.
“This direct distribution model was ruled to ‘undoubtedly benefit consumers’ by the Milan Court, as recently as Jan 2024.”
Ryanair’s long-standing chief executive, Michael O’Leary, branded the ruling “legally unsound”.
He said: “This AGCM ruling is an affront to the precedent Milan court ruling, and also 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.
“This legally baseless AGCM Ruling, and its absurd 256 million euro fine, undermines consumer protection and competition law, and it will be overturned on appeal.”
It comes after Italy fined Ryanair 3 million euros (£2.6 million) in 2019 for its policy of charging passengers for cabin baggage, but the penalty was later overturned by an administrative court.
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