Italy's competition authority said on
Thursday it has launched a fact-finding investigation into the
use of pricing algorithms in passenger air transport on routes
between the Italian mainland and the island regions of Sicily
and Sardinia.
"This decision is based on the fact that, coinciding with the
resumption of demand for passenger air transport starting in
2022, institutional and non-institutional actors have detected
high prices in correspondence with periods of peak demand," the
antitrust authority said in a statement.
The competition watchdog said the probe would "focus on the
possible negative impact of the use of pricing algorithms on
market functioning and the conditions of supply to consumers" as
well as on "how airline ticket prices and their various
components are communicated to the public".
The investigation comes after the government of Premier Giorgia
Meloni reconsidered controversial new rules concerning air fares
on certain domestic routes in its so-called 'Asset' decree,
eliminating the price cap of 200% of the average fare and giving
the Italian competition authority powers to verify possible
abuses particularly on routes to Sicily and Sardinia due to
their specific transportation needs.
"The conduct exercised (by airlines) on the routes to the
islands, the period of peak seasonal demand, and prices that are
more than 200% above the average fare are considered
circumstances and indications that the Authority can take into
account," read the technical report accompanying an amendment to
the decree presented by the government during the process of
conversion into law in parliament.
Airlines had blasted the price cap, arguing to the European
Commission trade body Airlines for Europe (A4E) that it could
"set a precedent and lead to a domino effect" as well as
"violating" the rights of companies to '"compete wherever
possible, set prices and define services as they see fit".
Ryanair CEO Eddie Wilson also slammed the measure, describing it
as "ridiculous, illegal and interfering with the free market,
according to European law" and later announcing an eight per
cent reduction in the air line's services to and from the
Italian island region of Sardinia this winter as a direct
result.
ALL RIGHTS RESERVED © Copyright ANSA
