Ryanair Fined €256 Million for Abusing Market Dominance in Italy

Italy’s competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), has imposed a fine of €256 million (approximately $300 million) on Ryanair for allegedly abusing its dominant market position to restrict travel agencies from selling its tickets. The ruling, announced on December 23, 2025, stems from an investigation into Ryanair's practices from April 2023 to at least April 2025, during which the airline reportedly implemented an "elaborate strategy" to hinder online and traditional travel agencies.

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The AGCM's investigation revealed that Ryanair employed several tactics to limit the ability of travel agencies to sell its flights. These included introducing facial recognition procedures for customers booking through agencies, blocking payment methods, and mass-deleting accounts linked to online travel agencies (OTAs). The authority stated that these actions made it economically and technically burdensome for agencies to offer Ryanair flights, particularly when bundled with other services from different airlines or tourism providers. Additionally, Ryanair imposed restrictive partnership agreements on agencies, which prevented them from combining its flights with other travel services.

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Ryanair has vehemently rejected the AGCM's ruling, labeling it "legally flawed" and "bizarre." The airline's CEO, Michael O'Leary, stated that the decision contradicts a January 2024 Milan court ruling that found Ryanair's direct sales model beneficial for consumers. O'Leary emphasized that Ryanair has consistently aimed to provide the lowest fares by encouraging direct bookings through its website, which he argues has led to significant cost savings for consumers.

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The ruling has garnered mixed reactions. Supporters of the fine, including the online travel agency group eTravel Tech, argue that Ryanair's practices have stifled competition and limited consumer choice. They contend that the airline's actions have made it difficult for agencies to operate effectively, thereby reducing the quality and range of travel services available to consumers. Conversely, Ryanair maintains that its direct distribution model is essential for maintaining low fares and that the AGCM's ruling undermines consumer protection and competition law.

Benzinga

The AGCM's findings highlight a broader concern regarding Ryanair's market dominance, which is estimated to account for 38-40% of passenger traffic to and from Italy. The regulator's decision reflects increasing scrutiny of airline distribution practices across Europe, as authorities seek to ensure fair competition in the travel industry. Ryanair's appeal against the fine will be closely watched, as its outcome could set a precedent for how airlines manage their sales channels and interact with travel intermediaries.

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Ryanair has announced its intention to appeal the AGCM's ruling, asserting confidence that the decision will be overturned in court. The airline's legal team is preparing to challenge the fine, arguing that the AGCM's actions are an overreach that disregards previous court rulings. The appeal process will likely unfold over the coming months, with significant implications for Ryanair and the broader airline industry regarding competition and consumer rights.

RTE (Radio Television of Ireland)

• “He said: “This AGCM ruling is an affront to the precedent Milan court ruling, and also an affront to consumer protection and competition law.” — Michael O'Leary, CEO of Ryanair

St Albans Review

• “Ryanair has campaigned for many years to offer consumers the lowest fares by booking directly on the ryanair.com website,” — Ryanair Statement

DW News

• “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.” — AGCM Statement

Italy fines Ryanair $300mn for abuse of dominant position

This fine represents one of the largest penalties imposed on an airline in recent years and underscores the ongoing tension between low-cost carriers and regulatory bodies in Europe.

Italy fines Ryanair €255 million: why the low-cost airline was punished