Ryanair Faces €256 Million Fine in Italy Over Travel Agency Restrictions

Ryanair has been fined €256 million by Italy’s competition authority for allegedly employing an “abusive strategy” to obstruct third-party travel agencies from purchasing flights. The Italian Competition Authority (AGCM) stated that the low-cost airline made it increasingly difficult for agencies to secure flights through its website from April 2023 until at least April 2024.

The AGCM’s investigation revealed that Ryanair implemented a complex strategy that significantly hampered both online and traditional travel agencies in their attempts to purchase tickets. The regulator noted, “Ryanair put in place an elaborate strategy affecting the ability of online and traditional travel agencies to purchase Ryanair flights on ryanair.com.”

The ruling highlighted that the airline’s practices not only blocked but also complicated the purchasing process, especially when flights from Ryanair were combined with offerings from other carriers and additional travel services. This strategy reportedly reduced both direct and indirect competition among travel agencies.

Ryanair has announced plans to appeal the ruling, claiming the fine is unjust. A spokesperson for the airline stated, “Ryanair has campaigned for many years to offer consumers the lowest fares by booking directly on the ryanair.com website.” The airline pointed to a ruling by a Milan court in January 2024, which stated that the direct distribution model “undoubtedly benefits consumers.”

Ryanair’s chief executive, Michael O’Leary, criticized the AGCM ruling as “legally unsound,” arguing it contradicts the Milan court’s previous decision. He asserted, “This legally baseless AGCM ruling, and its absurd €256 million fine, undermines consumer protection and competition law, and it will be overturned on appeal.”

This is not the first time Ryanair has faced penalties in Italy. In 2019, the airline was fined €3 million for charging passengers for cabin baggage, although that decision was later overturned by an administrative court.

The ruling has garnered attention from the travel industry, with online travel agency eDreams Odigeo welcoming the decision. Guillaume Teissonniere, general counsel for eDreams, stated, “This is the latest in a mounting series of binding decisions across Europe that Ryanair has consistently chosen to ignore.” He called for an industry-wide investigation, emphasizing the need for compliance within the sector.

As Ryanair navigates this legal landscape, the implications of the ruling could significantly affect its operations in Italy and beyond, raising questions about the balance between low-cost airline practices and fair competition in the travel market.