Ryanair faces major legal test after €255m Italian competition fine
December 24, 2025
Italy’s competition authority has imposed one of its largest ever penalties on an airline, fining Ryanair more than €255 million for what it describes as an abuse of a dominant market position in its dealings with travel agents and online booking platforms.
The ruling immediately drew a sharp response from Europe’s largest low-cost carrier, which has vowed to appeal and described the decision as legally flawed.
The Italian watchdog (AGCM) argues that Ryanair used its market power to restrict how travel agencies could sell its flights when those flights were bundled with other airlines or additional services such as hotels or car hire.
Italian competition authority criticises Ryanair’s practices
According to the authority, the airline adopted a series of measures that made it harder for intermediaries to include Ryanair flights in wider travel packages.
Among the practices cited were the introduction of facial recognition procedures, restrictions on payment methods used by online travel agencies (OTAs), and the requirement for travel agents to sign partnership agreements that limited how Ryanair flights could be offered to consumers.
The regulator concluded that these steps collectively reinforced Ryanair’s control over distribution and reduced competition in travel services.
Ryanair rejects the accusations
Ryanair has rejected that assessment in forceful terms.
In a statement issued shortly after the ruling, the airline said it would immediately appeal both the decision and the fine, insisting that its direct distribution model is lawful and demonstrably pro-consumer.
The carrier pointed to a January 2024 ruling by the Milan Court of Appeal, which it says explicitly endorsed its approach to selling tickets directly to customers.
According to Ryanair, that court decision found that reserving ticket sales to its own channels did not amount to an abuse of dominance and that the model delivered lower fares by eliminating distribution costs.
The airline argues that the competition authority has ignored this precedent and instead relied on what it describes as an artificially narrow definition of the relevant market.
Is Ryanair dominant in the Italian aviation market?
Ryanair also disputes the claim that it holds a dominant position in Italian aviation, noting that its share of the overall market is just over 30%.
It says the regulator excluded long-haul travel and alternative modes of transport – including rail, bus and ferry services – in order to support its dominance finding.
The airline maintains that such exclusions distort the competitive landscape in which it operates.
Selling tickets through third-party websites
At the heart of the dispute is Ryanair’s long-standing insistence on selling tickets directly through its own website, rather than via third-party intermediaries.
The airline argues that this model protects consumers from hidden fees and inflated charges, which it says some OTAs have historically added to fares and ancillary services. Ryanair claims that unauthorised “screen scraping” of its website by certain platforms led to customers being overcharged and, in some cases, prevented the airline from communicating directly with passengers about flight changes or refunds.
In recent years, Ryanair has sought to formalise its relationship with intermediaries through approved OTA and travel agent agreements.
Under these arrangements, agents are given access to Ryanair’s inventory provided they present fares transparently and do not add undisclosed mark-ups. Ryanair says almost all major OTAs have signed up to these terms, with only a small number refusing.
‘Legally flawed ruling’
Ryanair’s CEO Michael O’Leary said: “Ryanair looks forward to successfully overturning this legally flawed ruling and its absurd €256m fine in the Courts.
“Today’s Ruling shows that the AGCM cannot be trusted to protect consumers, or uphold competition law, when it can be so easily misled by a tiny number of self-serving bricks & mortar travel agents and a Spanish OTA, making false claims.
“It is these OTAs and travel agents that the AGCM should be protecting consumers from. Today’s AGCM Ruling cannot ignore, and must respect the Precedent Jan 2024 Ruling of the Milan Court, and the pro-consumer behaviour of Ryanair in every market in Italy in which we operate. Both we and our lawyers, are confident that this flawed, gerrymandered AGCM ruling and its absurd €256m fine will be overturned on appeal.”
Tensions between airlines and regulators
The case highlights growing tensions between airlines and regulators over control of distribution, pricing transparency and the role of intermediaries in the digital travel market.
While airlines increasingly favour direct sales to maintain customer relationships and reduce costs, competition authorities continue to scrutinise whether such strategies limit consumer choice.
Ryanair’s appeal is likely to hinge on the weight given to the Milan Court ruling and on how dominance is defined in Italy’s air travel market.
Given the size of the fine and the implications for airline distribution models across Europe, the outcome will be closely watched by airlines, OTAs and regulators.
Featured image: Ryanair
