Ryanair to Immediately Appeal €256 Million Fine Imposed by Italian Competition Authority - Get updated on what's happening in tourism!

Ryanair has announced that it has instructed its lawyers to immediately appeal the ruling and €256 million fine imposed by the Italian Competition Authority (AGCM). Europe’s largest airline described the decision as legally unsound and contrary to a precedent judgment issued by the Milan Court in January 2024, which found that Ryanair’s direct distribution model “undoubtedly benefits consumers” and leads to competitive fares.

Conflict with Milan court precedent

Ryanair argues that the AGCM ruling seeks to ignore and overturn the January 2024 Milan Court decision, which explicitly validated the airline’s direct distribution strategy. According to Ryanair, that ruling confirmed the consumer benefits of booking directly via ryanair.com, including price transparency and access to the lowest promotional fares.

The airline maintains that its current distribution agreements with approved online travel agencies (OTAs) and bricks-and-mortar travel agents are compliant with competition law. These agreements allow access to Ryanair fares without charge, provided intermediaries do not overcharge consumers for flights or ancillary services.

Disputed claim of market dominance

Ryanair strongly contests the AGCM’s assertion that it holds a dominant position in the Italian air travel market. The airline points out that its market share in Italy is just over 30% and accuses the authority of using an artificially narrow market definition by excluding long-haul flights, short-haul alternatives to other countries, and competing modes of transport such as rail, bus, ferry and motorway travel.

According to Ryanair, this approach enabled the AGCM to construct an untenable claim of dominance that does not reflect actual competitive conditions in the Italian travel market.

Long-standing focus on direct booking

Ryanair reiterated that it has campaigned for many years to offer consumers the lowest possible fares by encouraging direct bookings through its website. The airline notes that this approach was explicitly endorsed by the Milan Court in 2024, despite pressure from certain online travel agencies and a small number of traditional travel agents.

The carrier argues that the AGCM ruling contradicts this judicial precedent and represents a biased assessment of Ryanair’s pricing and distribution practices.

Ryanair CEO criticises ruling

Ryanair CEO Michael O’Leary said the decision undermines both consumer protection and competition law.

“If today’s legally unsound AGCM ruling and fine is not appealed, then the AGCM proposes to set itself above the Milan Courts in making competition decisions. Ryanair has fought for many years for transparent pricing, and our approved OTA agreements are manifestly and clearly pro-consumer,” O’Leary said.

He added that before Ryanair’s market entry, a significant share of ticket revenue was absorbed by travel agent and GDS commissions, contributing to high fares and low industry margins.

“The internet and the ryanair.com website have enabled Ryanair to distribute directly to consumers, and we have passed on these cost savings in the form of the lowest air fares in Italy and Europe,” O’Leary said. “This AGCM ruling is both legally unsound and in direct contradiction of the January 2024 Milan Court ruling.”

Confidence in appeal outcome

Ryanair stated that it is confident the ruling and fine will be overturned on appeal. The airline insists that the AGCM should have adhered to the Milan Court’s precedent, which recognised that Ryanair’s direct distribution model lowers fares, reduces intermediation costs and improves direct communication with passengers.

Ryanair concluded that the decision reflects a failure by the authority to properly protect consumers and uphold competition law, and said it looks forward to having the ruling annulled by the courts.

Image Credit: © Ryanair