Italy fines Ryanair over €255 million for abusing dominant market position

DW
DW
3h ago
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Italy fined Ryanair €255 million for abusing dominance by restricting travel agency bookings from 2023 to 2025. Ryanair will appeal.
Italy fines Ryanair over €255 million for abusing dominant market position
A What happened
Italy's competition watchdog found Ryanair engaged in an 'abusive strategy' by blocking or restricting travel agencies' ability to sell Ryanair flights combined with other airlines or services from 2023 until at least April 2025. The airline implemented facial recognition on its booking site to disrupt agencies’ purchases, blocked payment methods, and deleted accounts. AGCM said these actions reduced market competition and raised consumer costs. Ryanair argued its direct booking policy benefits consumers and announced plans to appeal the ruling and fine.

Key insights

  • 1

    Regulators targeting distribution control in airline industry: The fine highlights increasing regulatory focus on airline distribution practices, particularly how dominant carriers can leverage their platforms to limit competition from travel agencies and bundled offerings.

  • 2

    Direct booking models face antitrust challenges: Ryanair's appeal and reliance on a prior court ruling signal tension between airlines’ push for direct sales to consumers and competition regulators wary of anti-competitive barriers.

  • 3

    Consumer cost implications from market dominance abuse: Restricting agencies raises consumer costs by limiting bundled options and reducing competitive pressure, revealing how dominant firms’ platform control can harm market efficiency.

Takeaways

Italy's hefty fine against Ryanair underscores regulatory pushback against dominant airlines restricting competition through platform control strategies. The case may redefine norms for airline distribution models in Europe.

Topics

World & Politics Policy & Regulation Trade & Tariffs

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