Ryanair will now allow parents to sit with their children without extra charges. 

In a major policy tweak the airline now 'reluctantly' allow parents to sit with their children for free from Thursday, a change it said would be revenue-neutral and comes two weeks after Britain's competition watchdog launched ‌a probe into its policy.

Europe's largest airline by passenger numbers previously required adults travelling with children aged between 2 and 11 to pay a "family seat" charge, allowing up to four children to sit next to one accompanying adult.

Britain's Competition and Markets Authority said the surcharge typically cost around £8 ($10.70) each way and may constitute forcing parents to pay Ryanair to meet its own child safety and disability obligations under aviation rules.

The budget carrier said families still have the option of paying the charge to reserve seats. Otherwise, they will be allocated random seats together for free after check-in, likely towards the rear of the plane.

"We will reluctantly adjust to this industry standard as we don't want to waste time ‌ explaining to misguided regulators how badly they misunderstand what is in the best interest of UK and Europe's consumers," Ryanair CEO Michael O'Leary said in a statement.

The airline accused Europe's regulators of stifling innovation and progress in requiring Ireland-based Ryanair to align its policy with that of most other European Union airlines.

A CMA spokesperson said it will test whether the new policy complies with the law and that if it does, the change will be "a win for families."

"But it doesn't change the fact that families have been paying for 'mandatory family seats.' Our investigation remains ongoing," the spokesperson said.

While the airline reiterated that its previous policy fully complies with all relevant laws and regulations.