Rome, Italy: Italy’s competition regulator has formally urged the European Union to implement comprehensive measures targeting opaque airline ticket pricing mechanisms, which it argues prevent consumers from making informed choices. The request comes amid a growing push within the EU to increase transparency in digital marketplaces, including airline pricing algorithms that rely on dynamic models and discretionary fees.
Italian Regulator Flags Lack of Price Transparency
The Italian Competition Authority (AGCM) has raised concerns over the growing complexity of airfare pricing models, where base fares are often stripped of essential services and final ticket costs are influenced by non-transparent algorithmic adjustments. The authority launched a sector-wide probe into the airline ticketing industry in 2023, examining how airlines apply ancillary charges for luggage, seat selection, and priority boarding.
The authority’s preliminary findings suggest that these pricing mechanisms may distort competition and mislead consumers, particularly when price comparisons are made across platforms or over time. In its official communication to the European Commission, AGCM emphasized the need for “systemic remedies” that would extend beyond isolated enforcement cases and instead establish uniform pricing disclosure standards across the sector.
Appeal for Coordinated EU-Level Enforcement
The AGCM’s formal submission to the EU’s Directorate-General for Competition calls for coordinated intervention to curb the use of opaque algorithms that hinder consumer choice. In particular, the regulator argues that market-wide remedies should be introduced to:
- Ensure all mandatory charges are included in the headline ticket price.
- Standardize the presentation of ancillary fees during the booking process.
- Improve access to data related to fare adjustments and algorithmic pricing inputs.
The Italian regulator has recommended legislative adjustments to require airlines and booking platforms to present the full cost of a flight, including all non-optional charges, at the outset of the customer’s search and selection process.
Broader EU Moves Toward Price Transparency
Italy’s appeal aligns with a broader EU agenda to address unfair digital practices. In April 2025, the European Parliament and Council provisionally agreed to a revision of consumer protection regulations, mandating that all pricing in online bookings must reflect the total cost of a service including taxes and unavoidable fees.
European Commission officials have acknowledged receipt of the AGCM’s request and confirmed that the matter is under internal review. While no formal action has yet been announced, Commission sources indicate that airline ticketing transparency remains a “priority area” under the current legislative cycle.
Airline Industry Response
Major European airlines and trade associations have not yet publicly responded to the AGCM’s proposal. However, industry stakeholders have previously cautioned that algorithmic pricing models are essential for revenue management and that further regulation could affect fare flexibility and promotional offerings.
The European Commission is expected to review the Italian authority’s findings and determine whether a formal investigation or legislative proposal is warranted. Should the EU proceed with market-wide enforcement or rulemaking, it would represent one of the most significant regulatory shifts in the airline industry’s pricing practices since the liberalization of air travel in Europe.
For now, national competition authorities across the EU are closely monitoring developments, with several reportedly considering similar investigations into dynamic pricing and transparency practices in the aviation sector.
