Italy's Antitrust Slaps Ryanair with €256M Fine Over 'Abusive' Ticket Sales Strategy

Europe's largest airline, Ryanair, has been hit with a massive €256 million fine by Italy's competition authority. The Italian competition authority (Autorità Garante della Concorrenza e del Mercato or AGCM) levied the fine for an "abusive strategy" to limit ticket sales by online travel agencies (OTAs). The regulator found that the Irish airline abused its dominant market position in Italy, where it carries 38-40% of passengers on routes to and from the country.

The Abusive Strategy and Technical Obstacles

The AGCM investigation covered Ryanair's conduct from April 2023 until at least April 2025. The airline used an elaborate strategy of technical obstacles to hinder travel agents.

• The airline rolled out facial recognition procedures for customers who purchased tickets via a third party.
• It intermittently or totally blocked booking attempts by OTAs.
• The airline also mass-deleted accounts linked to OTA bookings.

These actions were designed to force customers to book through Ryanair's own website. The authority concluded that this strategy blocked or made purchasing Ryanair flights more difficult when combined with other carriers' flights or tourism services.

Ryanair's 'War' on OTAs

Ryanair Chief Executive Michael O'Leary has long waged a public campaign against what he calls "pirate" travel agents, including Booking.com and Kayak. O'Leary has accused the travel agent industry of overcharging consumers with extra fees and markups. The airline's goal is a direct distribution model to pass on cost savings to consumers via lower fares.

In response to the ruling, Ryanair announced it would immediately appeal the decision. O'Leary called the fine "absurd" and the ruling "legally flawed." He noted that a Milan Court ruling in January 2024 had previously stated that Ryanair's direct distribution model "undoubtedly benefits consumers."

Broader Industry and Competition Impact

The airline's actions weakened competition by compromising the ability of agencies to create bundled travel packages. The AGCM stated that this reduced the quality and range of tourism services available to consumers.

This dispute highlights a major tension in the commercial aviation sector: the battle over distribution control. The International Air Transport Association (IATA) developed the New Distribution Capability (NDC) standard to help airlines sell ancillary products and richer content through third parties. Airlines often seek to bypass the high fees charged by traditional Global Distribution Systems (GDSs), which can be 2-4% of sales. However, regulators like the AGCM focus on ensuring fair competition and consumer choice in the broader travel market.

Ryanair's aggressive stance caused a temporary drop in ticket sales in late 2023. Despite this, the airline has continued its strong financial performance, rising to a reported record valuation of €31 billion (£27 billion). This places it among the world's most valuable airlines, behind only the US's Delta Air Lines. The final outcome of the appeal will set a significant precedent for competition law aviation and airline distribution strategy across Europe. For more commercial aviation news, visit flying.flights.

Key Details

• The Ryanair fine €256m was levied by Italy’s AGCM.
• The ruling cites abusive strategy ticket sales between April 2023 and April 2025.
• Tactics included facial recognition and blocking OTA booking attempts.
• Ryanair holds a 38-40% dominant market position in Italian air transport services.