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Italy’s competition authority has imposed a €255 million fine on Ryanair, alleging that the airline abused its dominant position in its dealings with travel agents. The decision centres on claims that the carrier restricted how travel agencies could sell Ryanair flights alongside other airlines or bundled travel services.

According to the regulator, Ryanair created economic and technical barriers that made it harder for travel agents to include its flights in broader travel packages. The authority highlighted a sequence of actions, including the initial introduction of facial recognition procedures, followed by restrictions on payments from online travel agencies, and later the imposition of partnership agreements that limited how agents could offer Ryanair flights.

The watchdog argued that Ryanair’s market power extends beyond its growing share of the low cost aviation market. It pointed to a combination of structural and operational factors that, in its view, allow the airline to operate with a high degree of independence from competitors and consumers. The alleged conduct is said to have taken place between April 2023 and at least April of this year.

From a regulatory perspective, the case reflects increasing scrutiny of how dominant companies interact with intermediaries in digital and travel markets. While airlines often argue that tighter control over distribution channels protects consumers from inflated prices, regulators are increasingly questioning whether such practices restrict competition and consumer choice.

Ryanair has confirmed that it intends to appeal the fine. The airline disputes the findings and claims the regulator’s decision conflicts with established legal precedent. It maintains that its distribution policies are designed to improve price transparency and prevent certain online travel agencies from overcharging customers.

The outcome of the appeal will be closely watched by the wider travel industry, as it may influence how airlines structure relationships with agents and digital platforms across Europe. For businesses operating in regulated markets, the case serves as a reminder that commercial strategies designed to protect margins can attract significant regulatory risk if they are perceived to limit competition.

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