0719 GMT October 21, 2019
Raden and Bluesmart said the changes, by several major airlines in December 2017, had made business impossible, according to bbc.com.
The new rules meant that luggage batteries had to be removable.
The smart suitcases feature weight sensors, a built-in phone charger and location awareness — but all require battery power.
Raden said, "Our intent was to add ease and simplicity to your travel experience and this unforeseen policy change has made this impossible.”
Bluesmart's products did not feature removable batteries at all.
The firm described its news as ‘bittersweet’ in an announcement online, saying that it had sold its intellectual property to US suitcase brand Travelpro.
Both firms said the luggage apps would continue to work for existing customers but refunds and replacements would not be possible.
Raden suitcases started at $295 and are still stocked by some retailers.
At time of writing, Amazon UK has Bluesmart suitcases available with a starting price of £364 ($490).
Analyst Ben Wood, from the College for Creative Studies (CCS) Insight, said that the rules had created confusion at check-in, meaning people were unsure whether they would be able to travel with their bags.
He added, "The integration of lithium-ion batteries and radio technologies such as Bluetooth and cellular connections was always going to make smart luggage a veritable minefield.
"Given the complex regulations around what you can and can't take on to a plane it is little surprise it has become an issue."