The research focused on the issue of how digital platform economies are changing market dynamics and consumer behavior, especially with the rise of disruptive events like the COVID-19 epidemic. The significance of this matter stems from the fact that digital platforms are progressively taking center stage in consumer engagement with markets, transforming conventional company models and competitive environments. It is imperative for businesses to comprehend these shifts to maintain their competitiveness and for policymakers to successfully manage the digital economy. A systematic literature review was conducted on 29 peer reviewed papers. Thematic analysis identified major themes and trends relating to the digital economy. The pandemic significantly sped up the adoption of digital platforms, resulting in a major impact on consumer behavior and increased dependency on digital payments and online purchasing. Additionally, it was demonstrated that digital platforms are undermining traditional competitive structures by assisting a significant market concentration where a small number of powerful firms control a large portion of the market. These findings have important consequences. The study emphasizes how firms must change to stay competitive in the digital environment. It calls for deeper investigation into the long-term effects of dominance of digital platforms, especially with reference to market competition and consumer autonomy. These discoveries lay the groundwork for upcoming studies and useful tactics for navigating the changing digital economy.