Android does support audio effects [1]. You cannot create new ones, but the built-in ones are very broad.
For example, the DynamicProcessing effect can be configured for your loudness compression use case.
Note that you will have to attach your effect to the global session, which was deprecated more than a decade ago but support has never been removed as there are no alternatives for global audio effects.
[1]: https://developer.android.com/reference/android/media/audiof...