According to the Android Developers Blog Google is working on a version of App Store for the Android platform, dubbed the "Android Market". Screen shots indicate that there apps may have access to your GPS location, and there is a mention of background running processes, a feature clearly missing in version 2.0 of iPhone.
Presumably, the new market will tie in with Google Checkout, allowing one-click purchase of paid apps from the mobile device. Also Google makes it clear that the market will be "open", providing "an unobstructed environment to make their content available".
