Irish airline Ryanair has received a chargesheet in an Italian abuse-of-dominance probe over alleged efforts to block travel agencies from selling its flights and steer customers to its own channels, MLex has learned. Court cases in Italy and Ireland over document seizures could delay a decision scheduled by the end of December, however.
Irish airline Ryanair has received a chargesheet in an Italian abuse-of-dominance probe started two years ago, Mlex has learned. The investigation centers on alleged conduct to undermine travel agencies’ sale of Ryanair flights and related services and to redirect customers to its own channels.
The Italian antitrust authority, known as the AGCM, issued a long statement of objections less than a month ago, MLex understands, reaffirming the suspicions it voiced it when it opened the investigation in September 2023 (see here).
The probe into Europe’s biggest airline by passenger numbers is scheduled to be concluded by this December, but this is being complicated due to ongoing litigation by Ryanair in the Italian and Irish courts.
Ireland's antitrust watchdog raided Ryanair's airport offices in Dublin at the request of its Italian counterpart last year, and the airline has sued to recover the documents seized by the AGCM and used in its investigation..
If the AGCM proceeds to a final decision and possible fine in its probe, based on the disputed documents, it risks having that decision later annulled by a court.
Ryanair filed lawsuits over the dawn raid, in Ireland against the Irish regulator and in Italy against the AGCM.
In May, a court in Rome upheld the AGCM's request to its Irish peer as valid under EU rules on cooperation between national antitrust agencies (see here). Ryanair appealed this ruling, and Italy’s highest administrative court is expected to hold a hearing by the end of next week, MLex has learned.
A hearing at the High Court in Dublin is scheduled to take place by mid-November.
Ryanair said this would be an "injunction hearing" that could result in the AGCM's probe deadline of the end of the year being extended. The same would potentially be true in the case of the Italian court proceedings.
— Probe context —
In the probe, Ryanair is accused of blocking travel agencies from buying tickets on its website and using technical barriers that hinder check-in for passengers who booked through agencies. The airline also allegedly disparaged agencies as unauthorized or unreliable to push customers toward its own channels and bundle add-on services such as hotels and car rentals.
The carrier is Italy’s largest with 46 million passengers in 2022 and 25 percent of its revenue generated there. According to the AGCM's 2023 probe document, it generated nearly half its revenue from ancillary services like baggage, seat selection and car rentals.
Ryanair denies wrongdoing, saying direct sales ensure transparency and lower prices.
Over the past two years, however, Ryanair has changed its approach to travel agencies, signing deals with several online platforms such as Expedia and Booking (see here) and this year launching a new Travel Agent Direct channel, known as TAD.
TAD allows authorized travel agencies to access Ryanair's portal directly and purchase flights and ancillary services, with a simplified procedure for refunds and re-routing, and the possibility of operational communications directly from the airline to the customer.
These developments have not resolved the AGCM's concerns, MLex understands.
Ryanair declined to comment directly on the AGCM's statement of objections. A spokesperson said: “We continue to refer the AGCM to the Milan Court decision of 2024 which ruled that Ryanair’s direct distribution model “undoubtedly benefits consumers.”
The Court of Appeal of Milan ruled last year in cases brought by online travel agents Lastminute and Viaggiare, that Ryanair’s direct distribution model benefited consumers and did not entail an abuse of a dominant position.