The Autorità Garante della Concorrenza e del Mercato (ACGM) in Italy has launched an inquiry into Ryanair (FR, Dublin International) on the grounds that it may have "perhaps abused a dominating position" in the market at the expense of consumers and travel agencies.
The ACGM claims that Ryanair, which is currently the largest airline in Italy based on weekly seat capacity, may be hurting regional travel agencies and customers by using its strong position "to extend its market power" in the provision of services like lodging and car rentals.
According to its "preliminary view," which was stated in the statement dated September 20, the airline "appears to prevent" travel agents from purchasing tickets via its website, limiting their ability to provide lodging and transportation services in addition to airline tickets.
"Ryanair's behaviour aims to prevent travel agencies from selling airline tickets, which is often the first step in vacation planning and a critical entrance point for marketing extra services. As a result, it may have negative effects on both travel agents and final consumers, resulting in a worsening of conditions in terms of quantity and quality as well as unnecessary difficulties in managing bookings," the report found.
The authority made it clear that a number of reports it had received since May were what prompted the investigation to be opened.
Ryanair's CEO, Eddie Wilson, stated that the airline welcomed the probe. Let's hope it's expanded to other elements [of the business] too so that it leads to transparency for everyone, he continued, as quoted by Italy's ANSA news agency, in Palermo during a presentation of the company's winter season schedule.
The airline and the Italian government are already at odds over Rome's proposal to regulate the cost of domestic flights to Sicily and Sardinia during peak travel periods, which is contained in a draught order. On September 20, Ryanair issued a warning that, in reaction, it will reduce its domestic service to Sicily by 10% during the upcoming winter season. It complained about the situation to the European Commission earlier this month. According to the ch-aviation capacity module, Ryanair presently offers 110 domestic trips inside Italy.
On the subject, Wilson stated that "the illegal price cap edict by the Italian government to restrict airlines' flexibility to establish low tickets has tragically badly damaged Italy's domestic growth."
Adolfo Urso, the industry minister, told reporters that although other provisions of the decree would stay in effect, there would "no longer be a ceiling" on pricing, giving the impression that the government was backing away from the proposal. The government also changed the wording of the directive by requesting that the ACGM oversee the cost of flights to the islands.
-By Maeve Fiona |thetransporteronline24|Dublin, Ireland
