The low-cost carrier’s action at the Irish High Court against both parties concerned eDreams’ online adverts on Google’s AdWords platform.
The conditions of the settlement were not disclosed.
Ryanair has been engaged in a number of legal cases across Europe against websites such as eDreams which it has branded as “screenscrapers”.
Ryanair claims the platforms subject consumers to extra charges.
In a statement, Ryanair said the legal resolution would “benefit consumers across Europe”.
Kenny Jacobs, Ryanair’s chief marketing officer, said: “We will continue to offer our customers the lowest fares in Europe and we welcome these measures, which will ensure transparency in relation to the online advertising of air fares, to the benefit of our customers.
“We are pleased to have resolved this issue and we welcome these commitments to consumer-friendly advertising on Google’s AdWords platform.”
A Google spokesperson said: “We are pleased to have reached an agreement with Ryanair and eDreams. We have clear policies on the type of ads we allow on our platforms and we remain committed to enforcing them to best serve consumers.”
Robert McNamara, head of UK & group external affairs at eDreams, said: “We are satisfied with this resolution and committed to helping travellers across Europe get the best priced and most convenient travel options.
“Our service is for the benefit of our customers and we hope this agreement will allow all those involved to focus on providing even better value and service to European travellers.”