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Platform-based competition has fundamentally altered the nature of rivalry in digital markets, shifting emphasis from firm-level resources to network effects, multi-sided participation, and ecosystem orchestration. This integrative review synthesizes theoretical perspectives on digital marketplaces, network effects, and ecosystem strategy, drawing on 35 peer-reviewed sources published between 2003 and 2026. It examines how platform market structures differ from traditional competition, the mechanisms through which network effects generate scaling advantages and competitive lock-in, and the strategic role of governance in balancing openness with control. The analysis highlights complementor dynamics, value creation versus capture tensions, and the evolving interplay between platform leaders, users, and complementors. By classifying and comparing core theoretical streams, the review identifies persistent strategic tensions—openness versus control, scale versus governance complexity, and innovation versus appropriation—and traces the maturation of the field from early two-sided market models to contemporary ecosystem perspectives. To advance coherence, the review introduces the platform competition layered synthesis (PCLS) model, a novel integrative architecture that organizes the literature into six interconnected layers. The model reveals feedback mechanisms through which market outcomes continuously reshape platform design and competitive positioning. Implications for digital business strategy and future research directions are discussed.