In a big legal victory for Ryanair, Italy’s Council of State has issued a final and binding judgment annulling a €4.2 million fine previously imposed by the Italian Competition Authority (AGCM). The ruling concludes that the antitrust body acted in a discriminatory and unlawful manner toward the airline regarding flight cancellations during the Covid-19 pandemic. As a result of this decision, the Italian government has been ordered to repay the full fine amount plus interest to Ryanair, marking a major rebuke of the AGCM’s administrative conduct.
The core of the court’s findings centers on a breach of the principles of reasonableness and consistency. The Council of State determined that the AGCM rejected Ryanair’s proposed commitments without any meaningful dialogue, even though it had accepted nearly identical commitments from other carriers such as Alitalia, Vueling, and Blue Panorama. By applying a different set of standards to Ryanair than to its competitors, the court found that the authority exercised its discretion inconsistently with the law. This judgment reinforces the requirement for regulatory bodies to act objectively and treat all market participants equally under equivalent circumstances.
Building on this legal momentum, Ryanair has called for an urgent reform of the AGCM, citing a perceived bias against the airline. Company leadership highlighted that this ruling provides a troubling context for other ongoing legal battles, specifically a much larger €256 million fine related to the airline’s direct distribution policy. Ryanair argues that the AGCM’s recent actions ignore established judicial precedents, such as a January 2024 ruling by the Milan Court of Appeal which found that Ryanair’s direct-to-consumer sales model actually benefits passengers by lowering fares and improving communication.
The airline’s management expressed confidence that the broader Italian judicial system will continue to uphold the rule of law and eventually overturn other pending fines that they describe as legally flawed. By appealing directly to Prime Minister Giorgia Meloni for institutional reform, Ryanair is pushing for a regulatory environment that prioritizes consumer interests and fair competition over what it describes as the unfair targeting of specific operators. For now, the Council of State’s decision serves as a definitive reminder that even the most powerful national authorities must remain within the bounds of non-discrimination.
