20th Sep 2023 09:51
(Alliance News) - Ryanair Holdings PLC is being probed in Italy over alleged market abuse which risks leaving travel agents out of pocket, the nation's competition watchdog said Wednesday.
The Italian Competition Authority said it has kicked off its probe after receiving a number of reports since last May.
The watchdog's preliminary view is that the Dublin-based carrier is "leveraging on its dominant position" in the travel sector to provide other tourist services, such as hotel and car rental bookings. This is harming travel agencies, the regulator said.
"In particular, on one side Ryanair appears to impede travel agencies from directly acquiring airline tickets through their own websites; on the other side, Ryanair permits the purchase of airline tickets exclusively for traditional travel agencies via the [global distribution system] platform, subjecting them to considerably less favourable conditions in terms of pricing, range of available services, and post-sale management of airline tickets," the competition regulator explained.
"Ryanair's conduct seeks to restrict travel agencies from selling airline tickets, which is typically the initial step in planning a holiday and a crucial entry point for selling additional services. As such, it could have adverse consequences on both travel agencies and end-consumers, leading to a deterioration of conditions, both in terms of quantity and quality, and unjustified difficulties in managing reservations."
Ryanair shares were 0.1% higher at EUR16.47 each in Dublin on Wednesday morning.
By Eric Cunha, Alliance News news editor
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