Raden and Bluesmart said the changes, by several major airlines in December 2017, had made business impossible.
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.
“…our intent was to add ease and simplicity to your travel experience and this unforeseen policy change has made this impossible,” Raden said in a message on its website, spotted by The Verge.
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.