Italy Says Ryanair Abused Market Power, Hands Down $301 Million Fine

Italy's antitrust regulator has hit Ryanair Holdings plc (NASDAQ:RYAAY) with a 255.8 million euros (around $301 million) fine, arguing the airline abused a dominant market position by restricting how travel agencies could sell its flights. Ryanair has vowed to appeal, calling the decision legally flawed and inconsistent with prior court rulings that upheld its direct sales model as consumer-friendly. On Tuesday, the Italian Competition Authority said Ryanair DAC, together with its parent company, engaged in anti-competitive conduct from April 2023 through at least April 2025. Also Read: Ryanair Profits Soar As Fares Jump And Easter Travel Lifts Demand Market Dominance Allegations In Italy The regulator concluded the airline held a dominant position in scheduled passenger air transport services to and from Italy, citing market shares of roughly 38% to 40% across domestic and European routes. According to the Authority, Ryanair's scale and market power allowed it to act largely independently of competitors and consumers. Investigators said this dominance enabled the airline to impose practices that limited the ability of online travel agencies (OTAs) and traditional agencies to bundle Ryanair flights with other carriers or tourism services. The ruling followed a lengthy investigation that found Ryanair implemented a multi-phase strategy designed to hinder travel agencies' access to its website. Booking Controls And Website Access Measures In late 2022, Ryanair allegedly began planning measures to curb agency activity. By mid-April 2023, it rolled out facial recognition checks targeting customers who booked through agencies. Later that year, as the investigation progressed, the airline intermittently or fully blocked agency bookings, including disabling payment methods and deleting accounts linked to OTA sales. In early 2024, Ryanair introduced partnership agreements and "Travel Agent Direct" accounts, which the Authority said restricted agencies from combining Ryanair flights with other services. Regulators also pointed to what they described as aggressive tactics to pressure agencies into signing agreements, including repeated booking blocks and public criticism of non-partner OTAs. Only in April 2025 did Ryanair make its full white-label iFrame solution available, enabling technical integrations that could restore competition in downstream travel services. Impact On Competition And Consumers The Authority concluded that until such integrations were in place, Ryanair's conduct reduced competition among agencies and narrowed consumer choice by limiting bundled travel offerings. Ryanair strongly rejected the findings. The airline said it has instructed its lawyers to immediately appeal both the ruling and the fine, arguing the decision ignores a January 2024 Milan court precedent that found its direct distribution model "undoubtedly benefits consumers" and supports competitive fares. The carrier also disputed claims of market dominance, saying regulators relied on an artificially narrow market definition while overlooking alternative transport options and competing airlines. Ryanair maintained that its approved agency agreements comply with competition law and protect consumers from overcharging. RYAAY Price Action: Ryanair Hldgs shares were down 1.15% at $72.27 at the time of publication on Tuesday, according to Benzinga Pro data. Read Next: MIAX Arm Strikes Deal With Boursa Kuwait To Expand Middle East Investment Access Image by Markus Mainka via Shutterstock