Competition Law in Tourism

360 COMPETITION LAW IN TOURISM 2. THE FACT On 20 February 2019, the Competition Authority concluded two preliminary proceedings against two major low-cost airlines2. The Authority determined that changes made by these low-cost airlines to the rules for transporting large cabin baggage, defined as the trolley bag up to 55x40x23, constitute an improper commercial practice, in that they deceive the consumer on the actual price of the ticket by no longer including in the basic rate, an essential element of air transport which is “large hand luggage”. The two carriers, since the beginning of autumn 2018, allowed ticket holders of a flight sold at the “Basic”/“Standard” fare3 to carry a single small bag (approx. 40x30x20), to be placed under their front seats. The abovementioned airlines no longer allowed the usual standard size trolley4 at those ticket prices, and the significant reduction of space available to the passenger was of course in the advantage of the carriers who were able to resell the aircraft space destined to carry hand luggage. The separation of the cost of the baggage would provide, in the pronunciation of the Authority (subsequently overturned by the Administrative Court of Lazio5), a false representation of the real cost of the air ticket, as it is not a possible charge, as indicated by the Art. 23 of European Regulation 1008/20086. 2 PS 11237- PS 11272, in Bulletin AGCM No. 8/2019, 25 February 2019. 3 BASIC for Wizz Air and STANDARD for Ryanair. 4 The established practice of considering standard carry-on baggage as the maximum trolley size of 55x40x23 is verified by the widespread presence of baggage measuring stands located in front of boarding gates. Suitcase manufacturers also advertise those measurements as being suitable for low-cost flights, further proving the practice. 5 On 29 October 2019, the Regional Administrative Court of Lazio with sentences 12455/2019 and 12456/2019 cancelled the Authority’s provision. 6 Article 23 of Regulation 1008/2008 of the European Parliament and of the Council of 24 September 2008: “1. Air fares and air rates available to the general public shall include the applicable conditions when offered or published in any form, including on the Internet, for air services from an airport located in the territory of a Member State to which the Treaty applies. The final price to be paid shall at all times be indicated and shall include the applicable air fare or air rate as well as all applicable taxes, and charges, surcharges and fees which are unavoidable and foreseeable at the time of publication. In addition to the indication of the final price, at least the following shall be specified: (a) air fare or air rate; (b) taxes; (c) airport charges; and (d) other charges, surcharges or fees, such as those related to security or fuel; where the items listed under (b), (c), and (d) have been added to the air fare or air rate. Optional price supplements shall be communicated in a clear, transparent and unambiguous way at the start of any booking process and their acceptance by the customer shall be on an ‘opt-in’ basis”.

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