Italy’s probe against Ryanair escalates tensions with airlines

afr.com:

Italy’s competition authority has opened a probe into Ryanair’s market position in the country, further escalating tensions between the Irish budget carrier and Prime Minister Giorgia Meloni’s government.

The authority is investigating Ryanair’s dominant position in services for tourists, including car rental and hotel bookings, which the watchdog alleged are harming travel agencies and clients, according to a statement.

Italy’s competition authority has opened a probe into Ryanair’s market position in the country. AP

The announcement comes amid a spat between the Italian government and Ryanair following a decree that aimed to set a price cap for domestic airline tickets to Italy’s islands.

Ryanair chief executive Michael O’Leary has blasted the proposed cap as illegal and threatened to scale back flights on popular domestic routes should the government hold on to the measure.

The airline had no immediate comment on the Italian probe.

While the government is now considering amending the price cap rule, it has granted the competition authority oversight of airline companies. The latest investigation, which kicked off after reports to the authority in May, is moving the focus from ticket price fixing to ancillary services to customers.

The watchdog alleges: “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.”

Bloomberg