As we reach the midpoint of 2025, mobile app developers—especially those working on Android—are navigating a public policy environment that is rapidly evolving on multiple fronts. This year, we’ve already seen major developments across privacy, artificial intelligence (AI), app marketplace rules, child safety, and federal taxation. Below, we’ve outlined key information you need to anticipate compliance needs, spot opportunities, and understand new pressures shaping app development and business strategy.
The State Patchwork: Privacy Legislation Expands
Once again, the United States goes another year without a comprehensive privacy law. This absence of uniform guardrails continues to be a major burden for smaller developers who don’t have an army of lawyers to handle compliance issues. Moreover, the lack of a single federal privacy law has driven states to take action. This year saw new privacy laws take effect in Delaware, Iowa, Nebraska, New Hampshire, New Jersey, Tennessee, Minnesota, Maryland, and others. These state statutes add layers to a patchwork of requirements for how apps handle user data, location information, and children’s personal details. For Android developers who distribute apps nationwide, this means more customization to privacy notices, consent flows, and data-handling practices based on geography.
At the federal level, the passage of a nationwide privacy law remains in limbo. For now, while we wait for Congress to act on a single privacy framework, it’s critical for developers to monitor where their users are and stay abreast of new state and sector-specific laws to avoid legal risk.
Artificial Intelligence: Lawmakers and Agencies Take Action
2025 has been a milestone year for the regulation of AI. At least a dozen states have passed or debated laws focused on AI transparency, algorithmic discrimination, and protections for children. These state actions range from disclosure mandates for AI-generated content to requirements for independent audits of high-risk uses.
On the federal side, the White House’s AI Action Plan was unveiled, prioritizing export of U.S. standards, research investment, and a “secure by design” approach for technology procurement. Congress briefly floated a 10-year ban on state-level AI regulations, but that proposal didn’t survive early Senate scrutiny, so developers should anticipate more, not less, state activity.
If you’re incorporating AI features, be aware that requirements can now vary by state, especially in apps serving minors or using sensitive data. Documentation and transparency in how your AI is implemented are becoming new best practices and may soon be legal requirements.
We expect to see a lot of policy discussion in this space in the fall when Congress returns from recess. Developers like you will have to be part of educating and advocating against AI laws that fail to address real issues around privacy and security, but instead create a giant morass of compliance requirements that only the largest companies in the world can hope to meet.
App Store Litigation and Market Access
One of the most significant legal developments for developers this year came down in the dispute between Epic Games and Google. In a major antitrust lawsuit, courts considered whether Google must share the Play Store’s entire app catalog with competing app marketplaces and other extreme interventions into Play’s business model, driven by a lawsuit on behalf of one large developer, Epic. What’s most disturbing about this case is the provision that would impact independent developers. In an amicus brief, ACT | The App Association and others argued that overly broad remedies could harm smaller developers by disrupting distribution and raising compliance costs.
The judge has ordered that Google must make available an API that allows third-party app stores to pull the entire catalog of apps in Google Play and display them in their competing store as though you, the developer, were selling on that store. You read that right. The judge’s remedy would mean ANY store, even if it sells other things you don’t want to be a part of, could display your app for sale as though you were on that store by choice. It also means that “scam stores” can use your apps to make themselves appear legit, even if it’s just a giant phishing scam. We have pushed back on this but only got the judge to concede to an “opt-out” provision, which, simply, is not good enough. The whole idea of the stores is trust. If your app appears in random scam stores, trust in the entire ecosystem drops like a rock.
For developers, the bottom line is clear: regulatory and legal changes affecting app stores could directly alter how you manage app distribution, updates, payments, and relationships with users. Meanwhile, Congress is still considering bills that could mandate support for third-party stores and alternative payment systems, breaking security rules and really damaging the curation of apps. Watch this space. New requirements for transparency, payment processing, and store access may be coming, and there will be opportunities for your voices to be heard in these conversations.
Age Assurance and Online Safety Run Hot
States like Utah, Texas, and Louisiana led the charge with new age verification laws demanding stricter parental controls, robust ID checks, and swift communication with developers about consent updates. The Supreme Court’s decision to uphold Texas’s law is already inspiring similar regulations elsewhere. One of the biggest problems with Texas and Louisiana legislation is the decision to require all apps, even if you don’t have child users, to manage an age verification system. This quite literally means if you build an app for managing a 3D printer, you will now be required by law to accept an age flag, and if the user is underage, document that you have parental consent for the child’s use of the app. Moreover, even if you want to deny use of the app to minors because you don’t want the hassle, you will need to document that you kicked them off the app. This last bit becomes crucial in states that have a private right of action, meaning unscrupulous lawyers could bring a suit against you, and you will have to prove that you didn’t allow kids on the app. Finally, if your app does serve minors or allows user-generated content, expect increasing requirements to verify ages and facilitate parental management, often with state-specific technical guidelines.
On the federal level, debates continue about the best way to balance child safety and user privacy, with the Kids Online Safety Act (KOSA) back in the spotlight but not yet enacted. Additionally, the App Store Accountability Act, similar to those passed in UT, LA, and TX, has been introduced in both Congressional chambers. We’ll keep you posted, but there may be significant calls to action if Congress moves forward with legislation that unduly burdens small developers.
Major Win for Developers: Restoration of Section 174 R&D Tax Deduction
Developers all over America, including many on this list, helped to restore a critical part of the federal tax code. The restoration of the research and development tax deduction – known as Section 174- will quite literally put money back into your company.
This fix permanently restored the full annual deduction of R&D expenses, giving small software businesses the certainty they need to plan and execute long-term business strategies. American businesses that were penalized for investing in innovation, hiring U.S. talent, and developing critical technologies now will have the ability to invest more upfront, run parallel testing, and reach the market faster.
Importantly for small businesses, the legislation allows for retroactive full R&D expensing back to 2022 for businesses with average annual gross receipts of $31 million or less. For developers, this means you can recover some of your investment in new features, technology experiments, and product launches, not to mention developers you may have hired to work on those projects, significantly improving your cash flow and internal investments. If your company paid taxes in prior years but missed out on the R&D credit due to the temporary change in law, check with a tax specialist about amending previous returns and planning future budgets with this now permanent deduction in mind.
Looking Ahead
The landscape for Android app development is more dynamic and legally complex than ever. From shifting privacy requirements to new rules for AI and growing scrutiny of app store practices, developers are facing a year of adjustment. The restoration of the R&D tax deduction is a rare bright spot, making it a good time to invest in innovation while keeping a sharp eye on compliance at both state and federal levels.
Stay engaged, track new developments, and check with professional advisors or developer advocacy groups to make sure your apps and businesses are positioned for the changes still to come.