Italy’s antitrust agency opened an investigation into low-cost airline Ryanair on Wednesday “for possible abuse of a dominant (market) position”, the latest regulatory challenge in Italy for Europe’s largest airline.
Ryanair is already in conflict with the Italian government, which is trying to keep prices down on domestic flights to the main islands at peak times.
The company said on Wednesday that Italian flights to Sicily will be reduced by 10% in its final winter schedule, blaming the government’s price cap.
Announcing a new regulatory battle, Italy’s competition authority said it suspects the airline is using a dominant position “to extend its power” into other sectors such as hotels and car rentals, to the detriment of travel agencies.
The company allegedly limits travel agencies’ ability to purchase tickets on its website, thereby limiting their ability to offer accommodation and transportation services alongside airline tickets, the official said.
The Italian government has asked the same regulator to police flight prices to the islands, amending an original decree announced in August to cap airfares.
Eddie Wilson, chief executive of Ryanair DAC, the largest airline in the Ryanair group, said the airline opposed the move despite the change.
The company welcomes the Antitrust investigation, which according to the Ansa agency must take other aspects into account and “give transparency to everyone”.
Source: Terra
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