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Almost makes me wonder if they're trying to trick people - e.g. this just see a price starting with 99 and assume 99 cents

How does Apple handle things like this? Does it immediately auth the CC for purchases over a certain amount?

To this point, I could see it as a shrewd marketing strategy where they buy the app with different iTunes, get back 70% of the price, and get themselves into the top grossing apps for a bit. Wonder if that helps with visibility?

Yes, that's where I saw it.