Privacy Policy for Mobile Apps:

Your mobile Android app, must have a Privacy Policy if the applications collects personal data from users.
You’ll need the Privacy Policy even if you do not collect this kind of data yourself but instead use third-party tools (such as Android Mobile App ) that will collect this data for you.

Requirements from Google Play Store:

According to its Help pages, Google Play isn’t making it a requirement to have a Privacy Policy for your Android apps.

As an Android apps developer, you may submit a privacy policy for each of your apps. When users browse your app in Google Play store, they will be able to review the privacy policy before downloading your app.

But the Google Play apps Developer distribution agreement of Google – which must be read and agreed to when you sign-up up for a Google Play account – informs you that you’re required to have “privacy procedures and notices in place“.

Requirements from Google Play Store

According to its Help pages, Google Play isn’t making it a requirement to have a Privacy Policy for your Android app or game. Note the “may submit” word in the paragraph below:

As an Android developer, you may submit a privacy policy for each of your apps. When users browse your app in Google Play, they will be able to review the privacy policy before downloading your app.

But the Google Play Developer distribution agreement of Google – which must be read and agreed to when you sign-up up for a Google Play account – informs you that you’re required to have “privacy procedures and notices in place“.
A “Privacy notice” is a Privacy Policy agreement.

You agree that if you use the Store to distribute Products, you will protect the privacy and legal rights of users. If the users provide you with, or your Product accesses or uses, user names, passwords, or other login information or personal information, you must make the users aware that the information will be available to your Product, and you must provide a legally adequate privacy notice and protection for those users.

There is also the section at the bottom of the same Google’s Developer agreement that instruct developers on what they can do if they don’t want to add the link to Privacy Policy when the app is submitted for review: