That means they have to follow the laws that apply to private businesses.
It might not apply to them, the way it is used today in Israel.
But you do have to have an understanding of how some rule you make will apply to people in the real world.
late 14c., "to put (one's faculties, etc.) to some task or career," late 14c., from Old French aploiier "apply, use, attach" (12c., Modern French appliquer), from Latin applicare "attach to, join, connect;" figuratively, "devote (oneself) to, give attention," from ad- "to" (see ad-) + plicare "fold" (see ply (v.1)). The etymological sense is "bring things in contact with one another." Of lotions, from early 15c. Meaning "seek a job by submitting an application for one" is from 1851. A by-form applicate is recorded from 1530s. Related: Applied; applying.