The regulator stepped in following concerns over high volumes of complaints about the airline and its failure to meet passenger rights obligations.
The authority began action last year after a summer of disruption. It said the budget airline had failed to meet passenger rights obligations, particularly around providing alternative flights when the original was cancelled.
The carrier had numerous problems due to staffing levels and the CAA said passengers felt Wizz Air was not providing appropriate care when flights were significantly delayed. The airline has made undertakings to ensure it now complies with re-routing and care obligations.