Photo: Ryanair A battle of giants between the Italian Competition Authority (AGCM) and the Irish ultra-low-cost airline Ryanair.
This week, the Italian authority filed a demand for a fine of 256 million euros, alleging that the airline is operating an "abusive strategy" in all matters related to ticket pricing and sales, and is preventing sales through external parties such as travel agents and sales websites.
In response, the airline says this is a legally incorrect decision that ignores a precedent-setting January 2024 Milan court ruling finding that Ryanair's direct distribution model benefits consumers and leads to competitive prices.
Ryanair notes that the AGCM's decision is an attempt to effectively overturn the court ruling, establishing that the company has a dominant position in the market for flights to and from Italy.
According to the airline, the determination is based on a narrow and artificial market definition, which does not include long-haul flights, competing land transportation such as trains, buses, and ferries, nor air access to nearby destinations.
The company also claims that the Competition Authority is ignoring its actual market share in Italy, which stands at just over 30%, and that this does not justify a finding of a dominant position. The company emphasizes that current agreements with online travel agencies and physical agents allow free access to Ryanair flight prices, provided that no additional fees are charged to consumers.
Ryanair emphasizes that the AGCM decision actually confirms that the existing agreements with travel agencies comply with competition laws, but despite this, the authority chose to impose an exceptional fine and present an analysis that the company claims is biased and unfounded.
According to the airline, the move was born, among other things, " under pressure from a Spanish OTA (which has repeatedly overcharged unsuspecting consumers), and a tiny number of bricks and mortar travel agents in Italy."
Ryanair CEO MIchael O'Leary. Photo: ShutterstockMichael O'Leary, Ryanair CEO: “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 (which have been agreed by almost every large OTA, with the notable exception of one Spanish OTA, who continues to overcharge its customers for flights and ancillary services) are manifestly and clearly pro-consumer."