India’s digital economy has rapidly transformed market structures, creating new opportunities while simultaneously raising complex competition law concerns. The Competition Act, 2002, originally designed for traditional industries, does not fully account for digital market characteristics such as network effects, platform ecosystems, and data-driven algorithms. This paper examines how the Competition Commission of India (CCI) applies the Act to digital marketplaces through case studies involving Amazon, Flipkart, Google, and WhatsApp. Using doctrinal and case-based analysis, the study evaluates the effectiveness of existing competition law tools in addressing platform dominance, self-preferencing, and data-driven market power. The findings indicate that while the Act has demonstrated interpretative flexibility, reliance solely on ex-post enforcement remains insufficient in rapidly evolving digital markets. The paper therefore argues for a balanced regulatory approach combining strengthened merger scrutiny, recognition of data as a source of market power, and targeted ex-ante obligations for dominant digital enterprises. Such a framework would help ensure fair competition, promote consumer welfare, and support sustainable innovation in India’s digital economy.