DUBLIN- Ryanair (FR) faces a €255 million penalty after Italy’s competition authority ruled the airline abused its market dominance. The case centers on restrictions placed on travel agents selling Ryanair fares.
The regulator said the practices affected bookings linked to Italy, including routes connected to Dublin Airport (DUB), by limiting how agencies could bundle Ryanair flights with other services.
Ryanair Fined €255 Million
Italy’s competition authority concluded that Ryanair used its market power to block or discourage travel agencies from freely offering its flights.
According to the ruling, the airline made it economically or technically difficult for agencies to combine Ryanair tickets with other airlines or travel products.
The authority highlighted a sequence of actions. Ryanair first introduced facial recognition procedures for customers booking through third-party platforms. It then blocked payment methods commonly used by online travel agencies.
The final step involved imposing partnership agreements that restricted how travel agents could include Ryanair flights in broader travel packages.
The regulator stated that these measures limited consumer choice and reduced competition across the travel distribution market. It also noted that the airline’s growing market share, combined with structural advantages, allowed Ryanair to act independently of both competitors and consumers.
Market Dominance and Competitive Impact
The watchdog emphasized that Ryanair’s dominance does not rely on market share alone. Other indicators, including network scale and control over distribution channels, reinforced its ability to influence how flights are sold.
According to the decision, these factors gave Ryanair significant market power and the ability to set conditions that travel agencies had little choice but to accept. This, the authority argued, weakened competition and harmed end customers.
The Italian authority said the abusive conduct began in April 2023 and continued through at least April 2024. During this period, the regulator assessed how Ryanair’s policies evolved and how they affected both traditional travel agents and online travel agencies.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
