On the iPhone, if an application is over 10MB, the iPhone will not allow you to download it over the celluar data network, requiring you to either download over wifi, or via iTunes on your computer. Does a similar rule apply to Google's Android Market? If so, what is the size limit for OTA downloads?
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Unlike the App Store, the Android Market imposes no size restrictions to over-the-air downloads, however there is indeed a size limit for Android Market applications, and currently being 50MB in the new Android Market / Play Store client update, up from 25MB:
We are also increasing the maximum size for .apk files on Market to 50MB, to better support richer games.
However, it's worth noting that apps can now have up to two 2GB expansion files hosted by the Play Store.

Julio Gorgé
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1FYI, the current limit is 25MB. It increases to 50MB with the Market update Google is currently pushing out. – Computerish Dec 12 '10 at 18:29
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Thanks for the extended info! – Julio Gorgé Dec 12 '10 at 18:39
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This is an old answer and the newer one is down below with 4050 mb, source for the information included in the comments. – Joakim Engstrom Aug 30 '12 at 13:45
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This size has been expanded to 50Mb and two separate 2gb files, which makes it total 4050mb.

Joakim Engstrom
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1I've no idea why I got downvoted. There is no size limit to celluar downloads. But the Play store APK download is at maximun 50mb, and the you can distrubute two 2gb files with that download. Which makes it 4050mb. And the Play store hosts all the files. Source can be found here: http://android-developers.blogspot.se/2012/03/android-apps-break-50mb-barrier.html – Joakim Engstrom Aug 02 '12 at 07:46