Italy's competition authority said on Thursday it had dropped an investigation into budget airline Ryanair after the carrier pledged to refund over €1.5 million to passengers who faced airport check-in surcharges after failing to check in online.

Italy's antitrust authority (AGCM) said on Thursday it had dropped a case against Ryanair after the low-cost airline committed to refund more than 1.5 million euros ($1.6 million) to customers who incurred in extra check-in costs.

Low-cost airline Ryanair is paying back a surcharge fee it imposed on tens of thousands of passengers in Italy for checking in at the airport, a total amount of more than €1.5 million ($1.6 million).