Why Italy's Competition Watchdog Fined Ryanair €256M for 'Abusive' Strategy

The Italian Competition Authority (AGCM) has imposed a massive fine on Ryanair, Europe's largest low-cost carrier. The penalty totals €255.8 million, or approximately €256 million. This is for an alleged “abusive strategy” against online and traditional travel agencies. The ruling is one of the largest competition fines ever levied against an airline in Europe.

The AGCM's Abuse of Dominance Finding

The AGCM concluded that Ryanair abused its dominant position in the Italian air travel market. The regulator estimates the airline holds a significant 38-40% market share of air passengers traveling to and from Italy. This dominance gave the carrier the ability to act independently of competitors and consumers, the authority stated.

The investigation found that the airline implemented an “elaborate strategy” between April 2023 and at least April 2025. This strategy was designed to hinder third-party travel agencies from purchasing flights on the ryanair.com website.

Key Details of the 'Abusive Strategy'

The AGCM identified several specific measures used by the airline:

• Technical Barriers: The carrier blocked, hindered, or made purchases more difficult on its website.
• Facial Recognition: Ryanair introduced facial recognition checks for users who bought tickets through an agency.
• Payment and Account Blocks: The airline blocked payment methods and mass-deleted accounts linked to online travel agency (OTA) bookings.
• Restrictive Agreements: Ryanair imposed partnership agreements on OTAs. These limited the agencies' ability to combine Ryanair flights with services from other carriers or additional tourism products.

The regulator argued these practices compromised the ability of agencies to offer bundled travel services. This ultimately reduced direct and indirect competition among agencies.

Ryanair's Appeal and Legal Defense

Ryanair immediately announced its intention to appeal the ruling and the fine. CEO Michael O’Leary branded the decision as “legally unsound” and “absurd”.

The airline maintains that its direct distribution model is pro-consumer. It claims that selling tickets primarily through ryanair.com allows it to offer the lowest fares by avoiding intermediary commissions.

Crucially, Ryanair argues the AGCM ruling contradicts a January 2024 Milan court decision. That court ruled the airline’s direct distribution model “undoubtedly benefits consumers”. The airline suggests the AGCM “gerrymandered” the market definition to invent a dominant position.

Online travel agency eDreams Odigeo, a key intervener in the case, welcomed the ruling. Its general counsel, Guillaume Teissonniere, called for an industry-wide investigation. He stated the ruling exposes a “corporate culture of complete disregard for the law”.

Industry Impact and Regulatory Precedent

This case highlights the ongoing tension in European aviation over ticket distribution channels. Low-cost carriers favor direct sales to maximize ancillary revenue and control customer data. Regulators, however, are increasingly scrutinizing these practices under competition law.

• Risk to Business Model: If the fine is upheld on appeal, it could force Ryanair to significantly loosen its grip on distribution. This would potentially erode the cost-saving structure of its low-cost carrier distribution model.
• Consumer Choice: The AGCM ruling focuses on the harm to consumer choice. It argues that blocking OTAs prevents customers from accessing combined flight-and-service packages.
• Future Enforcement: The outcome of the appeal will set a major precedent for how budget airlines must operate across the European Union. It signals a strong regulatory willingness to intervene when dominant airlines restrict access to key distribution channels.

This is not the first time Ryanair has faced regulatory action in Italy. A 2019 fine for cabin baggage charges was later overturned by an administrative court. The current appeal process is expected to be lengthy, potentially taking years to resolve. For more commercial aviation news and updates on regulatory challenges, visit flying.flights.