Ryanair has instructed its lawyers to immediately appeal the “bizarre and unsound” ruling and €256m fine handed out by the Italian Competition Authority (AGCM), regarding how its flights are sold in Italy.
The airline said the ruling overturns a previous ruling of the Milan Court which declared the airline’s direct distribution model benefited consumers and resulted in more competitive air fares.
According to the AGCM, Ryanair allegedly used its “dominant position” in the Italian aviation market to block or make it more difficult for travel agencies to offer Ryanair flights in combination with other airlines or other services, in larger travel packages.
Ryanair Group Chief Executive, Michael O’Leary said: “If today’s legally unsound AGCM Ruling and fine is not appealed, then the AGCM proposes to set itself above the Milan Courts in making competition decisions. Ryanair has fought for many years for transparent pricing, and our approved OTA agreements (which have been agreed by almost every large OTA, with the notable exception of one Spanish OTA, who continues to overcharge its customers for flights and ancillary services) are manifestly and clearly pro-consumer.
“When Ryanair first started in 1985, 20% of ticket revenues were wasted paying travel agents 10% commissions, and GDS systems 10% commissions, in an industry with high fares, but profit margins of less than 1%. The internet and the ryanair.com website have enabled Ryanair to distribute directly to consumers, and Ryanair has passed on these 20% cost savings in the form of the lowest air fares in Italy and Europe. Today’s AGCM ruling is both legally unsound, and it contradicts the Precedent Milan Court Ruling of January 2024, which declared that Ryanair’s direct distribution model “undoubtedly benefits consumers”.
“This AGCM Ruling is an affront to the Precedent Milan Court Ruling, and also an affront to consumer protection and competition law. Ryanair has grown rapidly in Italy – and in many other markets across Europe – by always offering the lowest air fares in every single market in which we operate. This legally baseless AGCM Ruling, and its absurd €256m fine, undermines consumer protection and competition law, and it will be overturned on appeal.
