Ryanair Fined $300M for "Abusive" Distribution Strategies

Italy’s competition authority AGCM has imposed a €255.8 million fine (around $300 million) on Ryanair for abusing its dominant position in the Italian air travel market.

Regulators said the airline carried out an “abusive strategy” that made it harder for travel agencies to sell Ryanair flights, weakening competition and reducing the quality and variety of travel services available to consumers.

Details of the ruling

The investigation found that between April 2023 and April 2025, Ryanair implemented measures that blocked or hindered agencies from purchasing flights on ryanair.com, particularly when agencies tried to bundle Ryanair flights with other airlines or travel services such as hotels and insurance.

The AGCM traced Ryanair’s restrictive tactics back to late 2022, with formal implementation from mid-April 2023. Early measures included facial recognition requirements that disproportionately affected agency bookings.

Later stages involved blocking or limiting booking attempts, restricting payment options, deleting accounts linked to OTAs, and imposing complex partnership terms. According to AGCM, these measures allowed Ryanair to exercise its dominance in outbound flights from Italy.

Ryanair's response and market implications

Ryanair announced it will appeal the ruling, maintaining that its direct sales model is legal and beneficial for consumers. CEO Michael O’Leary called the fine “absurd” and expressed confidence in overturning the decision in court.

The ruling has broader implications for the European travel market, as agencies and regulators will monitor the outcome closely. It could shape how other carriers structure distribution agreements and interact with booking intermediaries.

Also, recently, Ryanair discontinued its Prime membership program just eight months after launch. The program generated around $5.1 million in fees, but costs for delivering benefits exceeded $7 million, leaving a loss of almost $2 million.

The move signals Ryanair’s ongoing experimentation with direct-to-consumer offerings amid regulatory scrutiny.

Photo by Ivan Mihajlovic on Unsplash