‍DUBLIN — Italy's competition watchdog has levied a €256 million (US$268 million) fine against Ryanair (FR), marking one of the largest penalties ever imposed on a European airline for anti-competitive behavior. The Autorità Garante della Concorrenza e del Mercato (AGCM) ruled on December 22, 2025, that the Dublin-based carrier abused its dominant market position by systematically blocking travel agencies from selling its flights. Ryanair has immediately announced plans to appeal both the decision and the fine, citing the ruling in a press release as "legally flawed."

The Italian competition regulator found that Ryanair implemented what it described as an "elaborate strategy" to restrict travel agency access to its booking system between April 2023 and at least April 2024. According to the AGCM's findings, the airline introduced facial recognition verification procedures specifically designed to complicate bookings made by travel agencies. The authority also determined that Ryanair blocked payments originating from online travel agencies (OTAs), effectively preventing them from purchasing tickets on behalf of customers.

Regulatory Stance

The regulator stated that these measures prevented travel agencies from combining Ryanair flights with other carriers' services or offering bundled packages that included tourism and insurance products. The AGCM concluded that this conduct "reduced both direct and indirect competition among agencies" while simultaneously harming consumers' ability to access comprehensive travel services. The watchdog emphasized that Ryanair's actions limited consumer choice in the Italian market, where the carrier holds a significant share of air traffic.

The fine represents the culmination of a lengthy investigation into Ryanair's distribution practices across Italy. According to Reuters, the AGCM based its decision on evidence that Ryanair's policies created artificial barriers in the travel distribution market. The authority determined that the airline's dominant position in Italy—controlling approximately 38-40% of European routes to and from the country—amplified the anti-competitive impact of these restrictions.

Ryanair's Defense and Planned Appeal

CEO Michael O'Leary issued a strongly worded response, describing the AGCM ruling as "bizarre" and "an insult to consumer protection and competition law," according to RTE News. O'Leary argued that the decision contradicts a January 2024 Milan Court ruling which found that Ryanair's direct distribution model "undoubtedly benefits consumers" by protecting them from hidden charges imposed by online travel agencies, the Financial Times reported. The airline maintains that its approach saves customers money by eliminating intermediary fees that can add significant costs to airfares.

In a statement published on its corporate website, Ryanair declared it would "immediately appeal this legally flawed ruling and fine." The carrier emphasized that its distribution strategy is designed to ensure price transparency and prevent the unauthorized screen-scraping practices employed by some OTAs. Ryanair has consistently argued that direct bookings through its website offer consumers the lowest fares and greatest transparency in the European aviation market.

The airline also highlighted its significant contribution to Italian tourism and connectivity. According to Yahoo Finance UK, Ryanair pointed out that it serves millions of Italian passengers annually and operates extensive route networks from major Italian airports. The carrier contends that forcing it to accommodate third-party distributors would ultimately increase costs for consumers while benefiting intermediaries at the expense of travelers.

Market Impact and Industry Implications

The €256 million penalty ranks among the largest competition fines ever imposed on a European airline, reflecting Italian regulators' determination to enforce open distribution practices. The case highlights ongoing tensions between low-cost carriers seeking to maintain direct distribution models and regulatory authorities pushing for broader access through travel agencies. Industry observers note that the outcome of Ryanair's appeal could set important precedents for how airlines manage their distribution channels across the European Union.

The ruling comes at a time when European aviation faces multiple regulatory pressures, from environmental mandates to passenger rights enforcement. According to The Independent, consumer groups have generally supported efforts to ensure travelers can access flights through multiple distribution channels, arguing that competition among sellers benefits consumers. However, airlines counter that direct distribution eliminates unnecessary intermediaries and allows carriers to maintain quality control over the booking process.

Ryanair's case will now proceed through Italy's appeals process, which could take months or even years to resolve fully. RTE News reported that the airline expressed confidence in its legal position and cited previous favorable court rulings as evidence that its distribution policies comply with competition law. The final outcome will be closely watched across the aviation industry, as other low-cost carriers employ similar direct-booking strategies that could face regulatory scrutiny in multiple European markets.