Europe’s largest airline by traffic, Ryanair, is facing a new million-dollar lawsuit, this time in Italy, for abuse of a dominant position in the travel agency sector. The Autoridad Guarantee of Competence and Market (AGCM) imposed a fine of 255.76 million euros on the airline, considering that it has blocked and prevented the purchase of flights by intermediaries in the marketing of travel, both online and traditional, over the years.
The Irish immediately reacted to this controversy by announcing an appeal “against the unusual and unfounded resolution and the fine of 256 million euros”. Deputy advisor to the Ryanair group, Michael O’Leary, deplored that “the AGCM intends to place itself above the courts of Milan when adopting decisions on jurisdiction”. The executive recalls that there is low cost “It has been fighting for price transparency for many years, and our approved agreements with OTAs (online travel agencies), which have been accepted by all major OTAs, with the notable exception of a Spanish OTA, which continues to charge its customers more for flights and ancillary services, are clearly in favor of the consumer.”
The historic sanction in Italy comes on top of the 107 million taxes imposed last year on Ryanair in Spain, by the Ministry of Consumer Affairs, for practices such as the billing of manual equipment when they board the cabin. The AGCM fine was communicated this year and refers to events that occurred between April 2023 and April 2025. “The company, in a dominant position in the provision of national and European air services from Italy, carried out an abusive strategy aimed at obstructing travel agencies using Ryanair flights as part of its offer of tourist services,” the organization announced in a press release.
In a first phase, Ryanair, which has a market share of more than 30% in Italy, introduced facial recognition procedures on its website for users of tickets purchased in agencies. Subsequently, at the end of 2023, the airline blocked booking attempts made by travel agencies on its page. This was done through the blocking of payment methods and the massive cancellation of accounts linked to reservations made by these online travel agencies (OTA).
Thirdly, in 2024, it signed partnership agreements with OTAs and physical agencies with conditions limiting the possibility of offering Ryanair flights combined with other services. To this end, the Competing Body used as an instrument of persuasion “the intermittent blockade of reserves and an aggressive communication campaign directed against OTAs that do not adhere to these agreements”.
The sanction is based on the fact that the behavior of the airlines “has handicapped the ability of the agencies to acquire Ryanair flights to combine them with the flights of other carriers and/or with additional tourist services, thus reducing the direct and indirect competence exercised by the agencies themselves and, consequently, the quality and capacity of the tourist services offered to consumers”.
Michael O’Leary called the AGCM’s resolution “contrary to the previous sentence of the Milan court as well as to consumer protection and the right of jurisdiction.” The company recalls that it began operations in 1985, “when 20% of ticket revenues were wasted on paying commissions, about 10% to travel agencies and another 10% to GDS systems, in an industry with high fares, but profit margins of less than 1%.” Delegate O’Leary said his company’s Internet and website, Ryanair.com, was authorized to distribute directly to the consumer and transfer these 20% savings on Italy’s lowest airfares.
For Ryanair, the setback received this month in Italy “lacks legal solidity on the ground, even if it contradicts the previous decision of the Milan court of 2024, which declared that Ryanair’s direct distribution model “undoubtedly benefits consumers”, which was put on the first judicial screen by the agencies and now by the AGCM.
The company has agreements with online and traditional travel agencies that provide “fee-free” and unrestricted access to Ryanair airfares, with the exception of promotions. To this end, they must commit not to overcharge consumers when selling Ryanair fares and complementary services.
Management is confident of avoiding the €256 million scam with its appeal and says it “cannot trust that the AGCM will protect consumers or respect the right of jurisdiction when it can be so easily misled by a small number of traditional travel agencies acting in their own interests and together by the Spanish OTA making false claims.”
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