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Ryanair has been fined a whopping €256 million (£224 million) by Italy’s competition watchdog for allegedly adopting “abusive tactics” to disrupt third-party travel agencies.
The Italian Competition Authority (AGCM) claims the budget airline deliberately complicated the process for agencies to purchase flights through its website, a practice it observed from April 2023 until at least April this year.
The regulator said in its decision:
“After a complex investigation, the authority found that Ryanair carried out a wide-ranging strategy affecting the ability of online and traditional travel agencies to purchase Ryanair flights on ryanair.com.
“In particular, the Company’s tactics blocked, disrupted or made more difficult such purchases…when combined with flights operated by other carriers and/or other tourism and insurance services.”
It said, “These practices compromised the agencies’ ability to purchase Ryanair flights and combine them with flights from other airlines and/or additional travel services, thereby reducing direct and indirect competition between agencies.”
Ryanair said it would appeal the verdict and fine, which it said was “improperly imposed”.
dublinThe -based carrier said: “Ryanair has campaigned for many years to offer consumers the lowest fares by booking directly on the ryanair.com website.
“This direct distribution model was considered to ‘undoubtedly benefit consumers’ match Court, at the latest by January 2024.”
Ryanair’s longtime chief executive Michael O’Leary described the decision as “legally unfair”.
He said: “This decision of AGCM is an insult to precedent match Court decision, and also an insult to consumer protection and competition law.
“Ryanair has grown rapidly Italy – and in many other markets Europe – By always offering the lowest airfares in whatever market we operate.
“This legally baseless AGCM ruling and its absurd €256 million fine undermines consumer protection and competition law, and will be overturned on appeal.”
It comes after Italy fined Ryanair 3 million euros (£2.6 million) in 2019 over its policy of charging passengers for cabin baggage, but the fine was later overturned by an administrative court.