The competition authority says the low-cost carrier initially failed to correctly inform passengers of their right to compensation.
Ryanair has been fined €1.85 million by the Italian Competition Authority for, the ruling argues, failing to correctly inform passengers of their right to compensation last year when it cancelled thousands of flights due the pilot rostering scandal.
Ryanair has responded that it noted the ruling, which its lawyers are now reviewing, the Irish broadcaster RTE reports.
Last September, pilot shortages and botched scheduling forced the airline to axe more than 20,800 of its flights across Europe, hitting over 400,000 passengers, with Italy particularly badly affected.
The Italian Competition Authority argues that the cancellations were not due to unforeseeable circumstances but were triggered by organisational problems at the airline.
It says that Ryanair initially failed to correctly inform passengers of the existence of their right to financial compensation, as provided under EU legislation.
But it acknowledges that improvements were made to the passenger information on its website, and because of this a lower fine has been imposed than the one originally intended.