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Italy fines Ryanair over €255 million for blocking travel agencies

Italy’s competition authority fines Ryanair €255 million for hindering travel agencies, a day after penalising Apple for similar market dominance abuse.

ROME: Italy’s competition authority has fined low-cost airline Ryanair more than €255 million (USD 300 million) for allegedly abusing its dominant market position.

The AGCM said on Tuesday that Ryanair used an abusive strategy to block travel agencies’ access to its services between 2023 and at least April 2025.

The strategy aimed to hinder agencies from purchasing Ryanair flights on its website, whether alone or combined with other airlines’ flights or additional travel services.

These practices compromised agencies’ ability to combine services, thereby reducing direct and indirect competition.

Ryanair is by far the biggest air carrier in Italy, with a market share of 31.7% according to Italy’s civil aviation agency.

Italian carrier ITA holds a 9.9% market share.

Ryanair said in a statement that it would appeal the decision, calling it “bizarre” and “unsound”.

Chief executive Michael O’Leary said the airline’s direct sales model has passed on cost savings to consumers in the form of low airfares.

He noted that when Ryanair started in 1985, 20% of ticket revenues went to travel agencies and distributors.

The move comes a day after the same antitrust body fined US tech giant Apple €98 million for abusing its dominant position in the mobile app market.

Italy previously fined Ryanair €3 million in 2019 for its policy of charging passengers for cabin baggage.

That fine was eventually overturned by an administrative court.

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