Italy's competition authority has fined Ryanair €256 million (£224 million) for allegedly blocking travel agencies from selling its flights. The budget airline announced it will immediately appeal the ruling.
The Italian Competition Authority (AGCM) accused Ryanair of implementing an "elaborate strategy" to hinder online and traditional travel agencies from purchasing flights on its website between April 2023 and April this year. The authority said Ryanair «blocked, hindered or made such purchases more difficult and/or economically or technically burdensome when combined with flights operated by other carriers and/or other tourism and insurance services.»
These practices «compromised the ability of agencies to purchase Ryanair flights and combine them with flights from other airlines and/or additional travel services, thereby reducing direct and indirect competition between agencies,» according to the ruling.
Ryanair's Response
Ryanair rejected the fine as "unjustly levied" and "legally flawed". Chief executive Michael O'Leary called the ruling «an affront to consumer protection and competition law.»
The airline defended its direct distribution model, citing a Milan Court ruling from January that found it «undoubtedly benefits consumers». O'Leary said: «The internet and the ryanair.com website have enabled Ryanair to distribute directly to consumers, and Ryanair has passed on these 20% cost savings in the form of the lowest air fares in Italy and Europe. Ryanair looks forward to successfully overturning this legally flawed ruling and its absurd €256m fine in the courts.»
Tactics Under Investigation
The authority detailed Ryanair's methods, which included rolling out facial recognition procedures for third-party ticket buyers, blocking or intermittently hindering travel agency booking attempts including payment methods, and imposing partnership agreements that banned sales of Ryanair flights in combination with other carriers.
Only in April this year did Ryanair allow agencies' websites to link up with its own services. The tactics led to a drop in the airline's sales in late 2023, though Ryanair has since risen to a record valuation of €31 billion.
Previous Disputes
This marks the second major Italian fine for Ryanair. In 2019, the authority imposed a €3 million penalty over the airline's cabin baggage policy. That fine was later overturned by an administrative court.
O'Leary has waged a public campaign against online travel agents, accusing them of "scamming" consumers with extra fees. The airline has historically conducted the vast majority of its sales through its own website.
Note: This article was created with Artificial Intelligence (AI).
