ROME, Dec 23, 2025 – Italy’s competition authority has fined Ryanair Holdings PLC, Europe’s largest budget airline, over 255 million euros (approximately $300.19 million) for allegedly abusing its dominant position in dealings with travel agencies. The regulatory decision comes after the airline reportedly blocked or restricted travel agencies from offering Ryanair flights in combination with other carriers or services, affecting the flexibility of travel packages.

The authority cited a series of practices that it said harmed fair competition and limited consumer choice. Among the concerns were the airline’s initial introduction of facial recognition procedures, which were later coupled with restrictions on payments from online travel agencies (OTAs). Additionally, Ryanair imposed partnership agreements that constrained travel agents’ ability to include Ryanair flights in broader travel offerings.

According to the watchdog, Ryanair’s dominant market position stems not only from its growing market share but also from other indicators that enable the airline to act independently of competitors and consumers. The alleged anti-competitive conduct occurred from April 2023 through at least April 2025.

Ryanair quickly responded to the ruling, calling it “bizarre” and “unsound” in a statement on its corporate website. The airline defended its direct distribution model, arguing it provides better value to consumers, and confirmed it will immediately appeal the decision.

Experts say the fine reflects a broader regulatory focus in Europe on preventing large airlines from using market power to restrict competition and maintain unfair control over travel agency networks. The ruling also underscores the challenges online and traditional travel agencies face when negotiating partnerships with dominant carriers.

Travelers and industry observers will be watching closely, as Ryanair’s appeal could affect future regulatory enforcement and the structure of airline distribution in Europe. Meanwhile, the fine sends a clear signal to major airlines that European regulators are intensifying scrutiny of anti-competitive practices in the aviation sector.