Campaign finance law shapes political competition by regulating the funds that individuals and organizations can contribute to political candidates and parties. These laws aim to create a level playing field, preventing the undue influence of wealthy donors on electoral outcomes and policymaking. By imposing limits on contributions and requiring disclosure of funding sources, campaign finance regulations promote transparency and integrity in the electoral process. However, critics argue that these laws may unintentionally favor incumbents or established parties, thereby limiting competition and reducing opportunities for new candidates to emerge and challenge the status quo.