Italy’s competition watchdog has imposed a €255 million fine on Ryanair, accusing Europe’s largest low-cost carrier of abusing its dominant market position in dealings with travel agencies. The decision marks one of the most significant antitrust penalties ever issued against an airline in Italy and adds to growing regulatory scrutiny of how major carriers control ticket distribution and customer access.
According to the Italian Competition Authority, the airline implemented a series of practices between April 2023 and at least April 2025 that made it harder or more expensive for travel agencies to sell Ryanair flights alongside other airlines or complementary services such as hotels and insurance. Regulators argued that these measures restricted competition and limited consumer choice, particularly in a market where Ryanair holds exceptional influence.
Ryanair, which commands roughly one-third of Italy’s air travel market, strongly rejected the ruling. The airline described the decision as unfounded and said it would appeal immediately, defending its long-standing strategy of prioritizing direct sales through its own website. Company executives maintain that this approach allows Ryanair to keep fares low by avoiding commission fees traditionally paid to intermediaries.
Why Italy’s Regulator Took Action
Italian authorities said the case centered on a pattern of behavior that went beyond a single policy change. Investigators pointed to a combination of technical and commercial barriers that allegedly prevented online and traditional travel agencies from freely accessing Ryanair fares. These included limits on payment methods, the introduction of identity verification procedures, and contractual terms that restricted how Ryanair flights could be bundled with competing services.
The regulator argued that such practices effectively forced agencies to abandon Ryanair or accept conditions that undermined their ability to compete. By doing so, officials said, the airline leveraged its market strength to act independently of both competitors and consumers, a hallmark of dominant market power under European competition law.
The authority also emphasized that Ryanair’s scale in Italy magnified the impact of these measures. With a market share far ahead of its nearest rivals, any restrictions imposed by the airline were seen as having a disproportionate effect on the broader travel ecosystem, including smaller agencies and alternative carriers.
Ryanair countered that its direct distribution model has delivered lower fares across Italy and Europe by eliminating intermediary costs. Company leadership argued that savings once paid to agents have been passed directly to passengers, helping to stimulate demand and expand air travel. The airline also noted that it has faced regulatory challenges before, including a baggage fee case in 2019 that was later overturned.
The fine comes amid a broader push by Italian authorities to rein in dominant players across industries, following a separate antitrust penalty issued against a major U.S. technology firm earlier this week. For the airline industry, the case underscores increasing tension between low-cost carriers’ digital-first strategies and regulators’ efforts to preserve open competition.
As Ryanair prepares its appeal, the ruling is likely to resonate beyond Italy, potentially influencing how airlines across Europe structure relationships with travel agencies in an increasingly fragmented and tightly regulated marketplace.