Ryanair is to appeal a €1.3mfine by Italy’s Competition Authority (AGCM) for allegedly providing misleading information during an antitrust investigation into its practices with online travel agencies (OTAs).
The penalty, marks the latest chapter in a long-running feud between the Irish carrier and Italian regulators, highlighting tensions over Ryanair’s restrictive policies towards OTAs.
The AGCM’s decision, announced on 19 August, stems from a probe into whether Ryanair’s practices unfairly limit OTAs’ ability to sell its tickets, potentially stifling competition and reducing consumer choice in Italy’s aviation market.
The investigation began in 2023, focusing on Ryanair’s dominant position in Italy, where it operates an extensive network of low-cost flights. The AGCM suspected the airline of abusing its market power by imposing restrictions that prevent OTAs from offering competitive deals, thereby limiting transparency in ticket pricing.
During the probe, Italian authorities conducted a dawn raid at Ryanair’s headquarters, which they say uncoveed documents the airline had claimed did not exist. The AGCM labelled Ryanair’s actions as “grossly negligent,” resulting in the €1.3m fine, the highest ever imposed by the authority for such a breach.
Ryanair swiftly responded, announcing its intent to appeal the decision, with a spokesperson dismissing the fine as “baseless” and accusing the AGCM of fabricating claims about a nonexistent business plan.
Ryanair has long championed direct bookings through its website, arguing that this approach ensures lower costs and greater transparency for passengers.
However, critics, including OTAs like eDreams and On the Beach, contend that Ryanair’s policies hinder market competition by restricting their ability to offer flights alongside other travel services, such as hotels and car rentals.
This dispute is not new; in April 2024, the AGCM ordered Ryanair to stop blocking OTA ticket sales, a directive the airline challenged, citing a Milan Court of Appeal ruling that upheld its direct sales model as reasonable. The ongoing legal battle has broader implications for the European travel industry, where OTAs play a crucial role in helping consumers compare fares. If Ryanair’s appeal fails, it could face further scrutiny across Europe, potentially costing the airline millions in compliance adjustments or additional fines.
For passengers, the dispute could influence how they book flights. Ryanair’s push for direct bookings may limit options for comparing prices across platforms, potentially increasing costs for those relying on OTAs, with estimates suggesting price differences of €10 to €50 per ticket when booking through third parties.
The airline’s aggressive stance has also drawn criticism for alleged overcharging by OTAs, with Ryanair claiming some agencies impose mark-ups as high as 117%. Meanwhile, the AGCM’s actions signal a commitment to protecting consumer choice, though Ryanair argues its model ultimately benefits passengers by keeping fares low, with average ticket prices around €40 in Italy.
As the appeal process unfolds, with a hearing expected later this year, the outcome could set a precedent for how airlines and OTAs interact across Europe. Ryanair’s history of regulatory clashes in Italy, including a €4.2m fine in 2021 for failing to refund passengers during the COVID-19 crisis and a €3m penalty in 2019 for allegedly misleading cabin baggage rules, underscores the airline’s contentious relationship with Italian authorities. For now, travellers are advised to book directly with Ryanair to avoid potential OTA surcharges, though those seeking bundled travel packages may face higher costs or limited options.
