Digital sovereignty is a crucial aspect of modern democracy, determining a state's ability to control its digital infrastructure, regulate technology, and protect citizen data. In today’s world, data has become the most valuable resource, surpassing even oil and gold, as it enables those who control it to influence public perception and decision-making. Democratic states prioritize transparency, freedom of speech, and data protection, while autocratic regimes use digital tools for censorship, surveillance, and propaganda. The European Union (EU) and other democratic nations implement regulations such as GDPR, DSA, and DMA to ensure fair competition, secure personal data, and counter disinformation. However, the challenge remains: balancing security with fundamental freedoms. The global contest over digital sovereignty reflects the broader geopolitical struggle between democratic and authoritarian models. While democracies regulate digital platforms to protect citizens, autocratic states monopolize online spaces to control narratives. International collaboration, such as between the EU and Taiwan, is vital for strengthening cybersecurity, countering digital propaganda, and fostering technological independence. Ultimately, digital sovereignty must not lead to isolation but serve as a tool for democratic resilience. The future lies in cooperation, transparency, and the protection of fundamental rights in the digital realm.