Ryanair fined €256m over ‘abusive strategy’ to restrict ticket gross sales by on-line journey companies | Ryanair

Ryanair has been fined €256m (£223m) by Italy’s competitors authority for abusing its dominant market place to restrict gross sales of tickets by on-line journey brokers.

The authority mentioned Europe’s largest airline had “implemented an abusive strategy to hinder travel agencies” by way of an “elaborate strategy” of technical obstacles for brokers and passengers to make it troublesome for on-line journey brokers to promote Ryanair tickets and as an alternative drive gross sales via its personal web site.

The fantastic associated to Ryanair’s conduct between April 2023 and no less than till April 2025, the authority mentioned on Tuesday. It mentioned Ryanair had prevented on-line journey brokers from promoting tickets on its flights together with different airways and providers, weakening competitors.

Ryanair mentioned it might instantly enchantment towards the “legally flawed” ruling.

The Ryanair chief government, Michael O’Leary, had determined to wage struggle on what he described as “pirate” journey brokers, resembling Booking.com, Kiwi and Kayak. O’Leary accused the journey agent business of scamming and ripping off unsuspecting shoppers by charging additional charges and markups on ticket costs.

O’Leary was ready to just accept decrease ticket gross sales as he tried to forestall journey brokers from promoting tickets, forcing their passengers to fill out additional types supposedly as a safety measure. The abrupt elimination of Ryanair flights from brokers’ web sites in late 2023 induced a drop in gross sales for the airline.

The decrease gross sales dented Ryanair’s earnings, though they haven’t prevented the Irish airline from rising to a file valuation of €31bn (£27bn). That has made it the world’s second most useful airline, behind solely the US’s Delta Air Lines.

O’Leary – who is understood for his combative and sometimes sweary criticisms of airports, rivals and regulators – is planning handy over management of the enterprise to a successor inside the subsequent 5 to 10 years. He will likely be given shares price €111m (£97m) if he stays on the airline till the tip of July 2028. He was already a billionaire on paper due to his shareholding.

Responding to the ruling, O’Leary mentioned it was “an affront to consumer protection and competition law”.

He added: “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.

“Ryanair looks forward to successfully overturning this legally flawed ruling and its absurd €256m fine in the courts.”

The overwhelming majority of Ryanair’s gross sales came about via its web site even earlier than the battle towards on-line journey brokers. However, the Italian authority mentioned Ryanair had been responsible of “abuse of a dominant position” and utilizing its “significant market power” in attempting to stamp out the enterprise.

Ryanair’s ways included rolling out facial recognition procedures for individuals who purchased tickets by way of a 3rd occasion, claiming that was essential for safety. It then “totally or intermittently blocked booking attempts by travel agencies”, together with by blocking fee strategies and mass-deleting accounts.

The airline then “imposed partnership agreements” on companies that banned gross sales of Ryanair flights in mixtures with different carriers, and blocked bookings to drive them to enroll. Only in April this yr did it permit companies’ web sites to hyperlink up with its personal providers, permitting efficient competitors.

The competitors authority mentioned Ryanair’s actions had “blocked, hindered or made such purchases more difficult and/or economically or technically burdensome when combined with flights operated by other carriers and/or other tourism and insurance services”.