An Irish appeals court has rejected Ryanair’s bid to sue Italy’s antitrust authority (Autorità Garante Della Concorrenza e del Mercato – ACGM). The dispute occurred over a search of the airline’s Dublin Airport offices in March 2024.
The ACGM is an independent regulatory body responsible for enforcing laws that protect consumer rights. They work to ensure that businesses operate fairly in an open, competitive market.
Initially, there were complaints from Italian travel agencies, and a consumer group, regarding restrictions imposed by Ryanair on ticket sales. Thus, Ireland’s Competition and Consumer Protection Commission conducted the search at the request of the ACGM. Ryanair sued both antitrust agencies after the search, claiming the search warrants were invalid.
Ireland’s appeal court
The Irish Independent reported that Ryanair insinuated a “failure” by the High Court judge. They argued that “the judge failed to recognise the difference between an action by or against a state authority and an action arising out of the exercise by a state authority of the authority of the state”.
To simplify this, ‘an action by or against a state authority’ takes place when the state authority is acting in a legal role within a lawsuit. These claims are usually commercial or civil issues.
An action arising ‘out of the exercise by a state authority of the authority of the state’ refers to disputes that arise when the state exercises its sovereign powers. This includes decisions tied to public law, policy, or governance.
Ryanair pointed out that the judge had comprehended the lawsuit as the latter, rather than the former.
Moving on, the appellate court questioned the Irish courts’ jurisdiction under EU regulations, and the enforcement of judgements in commercial matters, for Ryanair’s case.
The court decided that Irish courts had the right to said jurisdiction, overturning Ryanair’s bid.
Spanish Minister
Ryanair is also fighting a legal battle in Spain. Ryanair has asked Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030 to withdraw a fine. Spain imposed this fine on four low-cost carriers in November, totalling 179 million euros. Ryanair’s share of the fine was 109 million Euro, the largest of the four.
Authorities imposed the fine after Ryanair allegedly overcharged passengers carrying suitcases in their cabins.
Reportedly, Ryanair is using a 2014 Court of Justice of the European Union (CJEU) ruling as a defence. The case argument saw a CJEU judge recognise the right of airlines to apply fees for luggage, and airlines are free to set this price as they please. However, the same judge stated that carry-on luggage “cannot be made subject to a price supplement”.
Spain is fining Ryanair over the carry-on luggage.
The airline also argued that EU treaties guarantee airlines the right to no government interference during commercial operations.
Ryanair’s side of the dispute
The European Commission said they would initiate an investigation against Spain. This follows complaints made by the International Air Transport Association, the Association of European Regional Airlines, and Airlines for Europe.
In a January 29 press conference in Brussels, Ryanair Holdings CEO Michael O’Leary called government minister Pablo Bustinduy a “crazy communist minister.” He added, “He thinks that passengers can take as much luggage as they want. No, they can’t.”
Bustinduy said it was his “duty to defend the rights of consumers” in Spain. He added that his duty “takes priority over the interests of of any multimillionaire or billionaire tycoon,”.
Ryanair said they will scrap 800,000 seats on seven Spanish routes by summer 2025. This is due to “excessive” Spanish airport fees.
Ryanair also lost 15,000 euro after a flight was diverted due to an intoxicated passenger.
What do you think of Ryanair? Let us know in the comments.
