The purpose of the research - is to study the digital economy and its role in the economic system, explore the relationship between sustainable development and the digital economy, explore the impact of digital transformation on the economy, and explore the development of digital entrepreneurship.

The methodology of the research -the theoretical basis of the research is to study the development of digital technologies in the economy using certain methods. The study used the methods of observation, induction, generalization and comparison.

The practical importance of the research - the main provisions and results of the study showed that economic activity in the European Union, developing in parallel with the pace of information and communication use, is in many areas below the average for Azerbaijan.

The results of the research - are related to the identification and consideration of developments in the field of information and communication technologies in Azerbaijan, and this also determines the use and legal regulation of the digital economy.

The originality and scientific novelty of the research - the study defines the role of digital technologies in the economy, analyzes the economic advantages of modern technologies, studies and clarifies legal issues in the digital economy.

Keywords: digital economy, destructive technologies, legal regulation, economic development.