Regulatory competition in the digital realm stands out due to the intersection of traditional legal frameworks and the emergence of regulatory technologies. As regulation of digital technologies and markets proliferates in the European Union, but also in the United States and China, the evolving global governance of the digital economy raises a critical question: How will competition between private and public regulators, as well as between different jurisdictions, affect firms’ strategic decisions, the development and diffusion of innovative technologies, and, ultimately, the welfare of societies? This contribution explores the peculiarities of regulatory competition in the digital realm, highlighting how technology itself—through algorithms, platforms, and protocols—functions as a regulatory force alongside formal legal systems. Drawing parallels to Lawrence Lessig’s seminal work on code as law, the paper explores how code, driven by private actors and technological innovation, competes with state-imposed legal norms to influence digital governance and market behavior. By considering issues such as online platform terms, smart contracts, and AI governance, the paper illustrates how regulatory competition in the digital realm is reshaping the relationship between law and technology, raising new questions about sovereignty, enforcement, and the role of law in a digitally driven world.