I bet this all because of ReVanced and the patches done through ReVanced manager. We've seen them targeting the browser. Now they're going after phones. They're seeing lost revenue, and need a way to remove the loophole that lets people skip their stupid ads.
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Nah, it's 100% a response to the antitrust lawsuit they lost recently (Epic Games v Google) where they were ordered to offer third-party app stores on Google Play for X number of years. So if they can't have their app store monopoly anymore, they can use this to maintain control and insight into apps sold by competitors, and pretend it's for security.
Slightly unfortunate timing. I don't have much hope for the United States of America government to step in and come up with effective regulation right now. I suppose we should do this, yes. But I'd shift the main focus on developing alternative strategies, once this is inevitably going to fail. Or complain to the EU, maybe they'd like to get US tech giants under control.