Standards and regulations are simply one tool, and not even the most common one. In the US auto market for example, standards besides FMVSS (and IHS testing practically speaking) are purely optional. You can read FMVSS for free and compliance is self-certified. Emissions regs are slightly tighter, but not a hurdle for EVs.

And outside automotive there's plenty of leaders that don't dominate based on regulations. Google search doesn't dominate based on regulations. Spotify doesn't dominate because they enshrined themselves in copyright law.