Italy’s antitrust authority is investigating Ryanair for alleged abuse of its dominant market position. Europe’s largest airline and a market leader in Italy, Ryanair is accused of trying to extend its influence into other sectors such as hotels and car rentals to the detriment of travel agencies.
According to Reuters, the Italian Competition Authority suspects Ryanair is using its market dominance to limit travel agencies’ ability to purchase tickets from their site, thus limiting their capacity to provide combined air ticket, accommodation, and transport services.
The same regulator has separately opened an inquiry into possible price-fixing among Ryanair, Wizz Air, and EasyJet for flights in and out of Sicily during Christmas. As a direct response to this, the Italian government decreed the capping of airfares to Sicily and Sardinia. Airlines for Europe (A4E) objected to the measure, claiming it violated the company’s right to set prices and compete. Ryanair’s CEO Eddie Wilson went further, terming the measure illegal and ridiculous.
Read more: EU Court Backs Ryanair Challenge To Lufthansa State Aid
This intervention is reported to be the cause of Ryanair’s 8% reduction in services to and from the Italian island region of Sardinia as introduced in the winter of 2020 by Premier Giorgia Meloni. The executive has since modified the bill, however, revoking the price cap on tickets, which had been set at 200% of the average fare, and granting the Italian antitrust authority close oversight to inspect any alleged admin practices.
The inquiry against Ryanair is part of an ongoing investigation of the potential abuse of market dominance in the airline industry, both nationally and in Europe’s aviation sector at large. A final decision is expected in 2021.
Source: Reuters
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI