The convergence of Artificial Intelligence (AI) and competition law has raised complex and evolving regulatory challenges, particularly in technologically dynamic economies such as the European Union (EU) and India. As businesses increasingly deploy algorithm-driven systems for pricing, advertising, and market analytics, traditional notions of anti-competitive conduct are being redefined. This research critically examines how AI has reshaped foundational concepts within competition law, including collusion, abuse of dominance, and market transparency. It explores how algorithms - particularly those that self-learn - may lead to tacit coordination among competitors, raising enforcement dilemmas without traditional evidence of intent or communication. The study further evaluates the current legal and institutional frameworks in both the EU and India, highlighting regulatory gaps and enforcement limitations. Through comparative analysis, the paper scrutinizes legal instruments such as the EU’s Digital Markets Act and India’s recent CCI interventions, illustrating the divergence in preparedness and policy articulation. It argues for a recalibrated enforcement strategy that includes algorithmic accountability, compliance-by-design, and cross-border regulatory cooperation. The research concludes with a forward-looking agenda, recommending enhanced algorithmic detection capabilities and legislative reforms aimed at bridging the gap between legal theory and technological reality. Ultimately, the study offers a roadmap for regulators and policymakers seeking to uphold market fairness in the age of artificial intelligence.