Italian competition authority fines Ryanair €256 million over distribution practices

The Italian Competition Authority (AGCM) has fined Ryanair DAC, jointly and severally with Ryanair Holdings plc, €255.8 million for abuse of a dominant position in the Italian air transport market. The authority concluded that the infringement began in April 2023 and continued until at least April 2025.

According to the AGCM, Ryanair holds a dominant position in the upstream market for scheduled passenger air transport services to and from Italy, covering both domestic and European routes. The authority estimates that Ryanair accounts for 38–40% of all passengers carried on routes to and from Italy and argues that this market share, combined with structural advantages, allows the airline to act largely independently of competitors and consumers.

AGCM Findings

Following an extensive investigation, the AGCM determined that Ryanair implemented a multi-stage strategy aimed at restricting the ability of online and traditional travel agencies to sell Ryanair flights as part of broader tourism offerings.

The authority identified several measures, including the introduction of facial recognition checks for agency-related bookings, the blocking of payment methods and deletion of accounts linked to OTA sales, and later the imposition of partnership agreements on both online and brick-and-mortar agencies. These agreements allegedly limited the ability of agencies to combine Ryanair flights with services from other airlines or with additional tourism products.

The AGCM concluded that, until the introduction of Ryanair’s white-label iFrame and API solutions in April 2025, these practices hindered competition in the downstream market for tourism services, reduced agencies’ ability to attract customers, and ultimately limited consumer choice.

Ryanair Response

Ryanair, the Irish low-cost airline based in Dublin, has announced it will immediately appeal the decision, describing the ruling and fine as legally flawed.

The airline argues that the AGCM ignored a January 2024 Milan Court ruling, which, according to Ryanair, found that its direct distribution model “undoubtedly benefits consumers” by lowering fares and reducing intermediation costs. Ryanair also disputes the authority’s market definition, claiming it excludes competing transport modes and overstates the airline’s market power in Italy.

Ryanair maintains that its current approved OTA and Travel Agent Direct agreements are compliant with competition law and provide price transparency for consumers.