Italy’s competition watchdog said today it has imposed a €256m fine on Europe’s biggest low-cost airline Ryanair for abusing a dominant market position in its dealings with travel agents.
The regulator said the airline is accused of blocking or making it more difficult, either economically or technically, for travel agencies to sell Ryanair flights alongside other airlines or additional services, reports RTE.
According to the authority, concerns included Ryanair’s initial introduction of facial recognition procedures, followed by restrictions on payments from online travel agencies (OTAs), and later the imposition of partnership agreements that limited how travel agents could include Ryanair flights in package deals.
“Its dominant position stems not only from its significant market share, which is continuing to grow, but also from numerous other indicators… (which) contribute to giving Ryanair (a) significant market power and the ability to act independently of competitors and consumers,” the watchdog said in a statement, reports RTE.
The regulator added that the alleged abuse of a dominant position occurred from April 2023 until at least April of this year.
Ryanair said it will appeal the Italian decision, describing the ruling as “bizarre” and “unsound”, and said it strongly disputes the allegations, reports RTE.
The airline said the watchdog’s decision is legally flawed and contradicts previous court rulings.
“Ryanair maintains that its distribution agreements promote price transparency and protect consumers from overcharging by certain OTAs,” it added, reports RTE.
Ryanair chief executive Michael O’Leary said that if today’s “legally unsound” AGCM ruling and fine are not appealed, the authority would be placing itself above the Milan courts when it comes to competition decisions.
“Ryanair has fought for many years for transparent pricing, and our approved OTA agreements (which have been agreed by almost every large OTA, with the notable exception of one Spanish OTA) are manifestly and clearly pro-consumer,” Michael O’Leary said, reports RTE.
“Today’s AGCM ruling is both legally unsound, and it contradicts the Precedent Milan Court Ruling of January 2024, which declared that Ryanair’s direct distribution model ‘undoubtedly benefits consumers’,” the CEO added, reports RTE.
“This AGCM ruling is an affront to the Precedent Milan Court Ruling, and also an affront to consumer protection and competition law,” he said, reports RTE.
“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 €256m fine, undermines consumer protection and competition law, and it will be overturned on appeal,” he added, reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.
