The Italian Competition Authority (AGCM) announced on December 23 2025 that Ryanair Holdings plc will be fined €255.8 million for abusing its dominant position by blocking travel‑agency sales. The fine represents 1.8 % of Ryanair’s consolidated revenue for the year ended March 31 2025 and is the largest penalty the agency has imposed on an airline in its history.
The AGCM’s investigation uncovered a program called ‘Shield’ that Ryanair used from April 2023 to at least April 2025 to make it difficult for online travel agencies (OTAs) to purchase flights on ryanair.com. Tactics included facial‑recognition checks for OTA‑booked customers, blocking certain payment methods, and imposing restrictive partnership agreements that limited OTAs’ ability to bundle Ryanair flights with other carriers’ services. These measures effectively reduced OTAs’ market share in Italy, where Ryanair commands a dominant share of domestic and short‑haul routes.
Ryanair’s financial performance in the period surrounding the ruling was strong. The airline reported a profit after tax of €1.61 billion for FY 2025, down from €1.92 billion a year earlier, while traffic grew 9 % to a record 200 million passengers. The €255.8 million fine, though sizable, is a relatively small fraction of the company’s annual revenue and does not materially alter its profitability trajectory, but it does add a significant regulatory cost and could prompt changes to its distribution strategy.
The airline has immediately filed an appeal, calling the ruling “bizarre” and “unsound.” Ryanair’s CEO, Michael O’Leary, cited a January 2024 Milan court decision that upheld the airline’s direct‑sales model as evidence that the AGCM’s findings are inconsistent with existing legal precedent. The appeal will likely focus on whether the AGCM’s interpretation of market dominance and the blocking tactics constitute a breach of EU competition law.
The ruling has broader implications for the airline industry. It signals that competition authorities are willing to scrutinize distribution practices that limit OTAs’ access to inventory, potentially forcing airlines to adopt more open distribution models. OTAs may seek to strengthen their bargaining power, while airlines may need to reassess the balance between direct sales and third‑party distribution to avoid future penalties.
In the coming months, the AGCM may pursue additional enforcement actions, and Ryanair’s compliance program will be closely monitored. The outcome of the appeal could set a precedent for how airlines’ distribution practices are regulated across the EU, affecting competitive dynamics and consumer choice in the travel market.
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