The main question I'm asking is what happens when the laws of the networked state conflict with the laws of the geographic state in which those citizens are loc

The main question I'm asking is what happens when the laws of the networked state conflict with the laws of the geographic state in which those citizens are located? If the networked state says its citizens can build their buildings in X way but the surrounding geographic state says to build them in Y way, what happens? Or on drugs, violence, policing, or really any law?