Ryanair, Google and eDreams have reached an out of court agreement on legal proceedings brought by the airline.
Conditions of the settlement will remain confidential but the agreement marks the end of a dispute started in 2015.
Ryanair had argued that eDreams was using the Google AdWords platform to convince customers they were dealing with the airline direct.
Ryanair marketing director Kenny Jacobs 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.”
Head of UK group and external affairs at eDreams, Robert McNamara, added: “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”.