Kyrgios was already suspended by the ATP Tour for two months in 2016 for "tanking" a match and insulting fans during a loss at the Shanghai Masters.
The latest incident occurred on an outer court at the Foro Italico, with Kyrgios losing 6-3, 6-7 (5), 2-1 against Ruud. First, Kyrgios slammed his racket to the clay and kicked a water bottle. Then he picked up a white chair and flung it on the court.
The men's tour said Kyrgios will lose his €33,635 ($57,510) in prize money from the tournament and 45 ATP points.
Kyrgios was also fined €20,000 for the three unsportsmanlike conduct penalties he received during the match and must cover the cost of his hospitality during the tournament, the ATP said.
"A zero pointer, fine, all this stuff is already tough enough," Federer added. "He knows it's a mistake."
Ruud said many players were debating how long Kyrgios should be suspended.
"It doesn't seem like anything makes him change these days," Ruud said. "The ATP should do something. I'm not the only one who thinks he should be suspended for at least half a year."
"Very eventful day to say the least," Kyrgios wrote on Instagram. "Emotions got the better of me and I just wanted to say that the atmosphere was crazy out there, just super unfortunate that it had to end in a default. Sorry Roma, see you again, maybe."
Before he was defaulted, Kyrgios received a warning for ball abuse, then was docked a point for unsportsmanlike conduct and lost a game for more unsportsmanlike conduct.
"He was getting angry that some guy was walking in between his first and second serve," Ruud said. "He was getting more angry. He does whatever he feels like doing. He got what he deserved."
- AP