Ryanair has announced it will take immediate legal action to challenge a major fine and a ruling from the Italian Competition Authority, which the airline has branded as "bizarre" and "legally unsound".
Ryanair's Vow to Fight 'Legally Unsound' Ruling
The budget carrier has instructed its lawyers to file an urgent appeal against a €256 million fine imposed by the Italian Competition Authority (AGCM). The airline argues the ruling seeks to overturn a precedent set by the Milan Court in January 2024, which had endorsed Ryanair's direct sales model.
Ryanair's Chief Executive, Michael O'Leary, issued a strongly worded statement criticising the AGCM's decision. He warned that if the ruling stands, it would allow the competition authority to place itself above the Milan Courts in making competition law decisions.
Defending the Direct Sales Model
At the heart of the dispute is Ryanair's direct distribution strategy, which sells tickets primarily through its own website. O'Leary passionately defended this model, stating it has been fundamental to delivering low fares across Europe.
He explained that when Ryanair launched in 1985, around 20% of ticket revenues were consumed by commissions paid to travel agents and Global Distribution Systems (GDS). The shift to online direct sales, he argued, allowed the airline to pass these significant cost savings directly to consumers.
"The internet and the ryanair.com website have enabled Ryanair to distribute directly to consumers," O'Leary said, "and Ryanair has passed on these 20% cost savings in the form of the lowest air fares in Italy and Europe."
Contradiction with Previous Court Decision
Ryanair's position is bolstered by the January 24, 2024, Precedent Ruling from the Milan Court. That earlier judgment explicitly declared that Ryanair's direct distribution model "undoubtedly benefits consumers" and leads to "competitive fares".
The airline contends that the new AGCM ruling is an "affront" to this court decision and to the principles of consumer protection and competition law. O'Leary emphasised that Ryanair's rapid growth in Italy and other European markets has been built on consistently offering the lowest available fares.
Ryanair has expressed confidence that this "legally baseless" ruling and the accompanying €256 million penalty will be overturned on appeal. The airline's commitment to its transparent pricing and direct-to-consumer approach remains unwavering as it prepares for the next stage of this legal battle.
