What Amazon Can't Control Is the Pricing Process for Self Published Authors

i just of discovered this whole a kindle pricing thing where if your book is priced above nine 99, your royalty rate changes to 30 % instead of 70%. If they're self published. The publishers have a different pricing scheme. So they'll continue to make the same royalty. But what amas? So they get fame royalty. They get the 70 % through amazon. And i'd think it makes sense for a company to have those kind of guide lines and still lowe you the freedom to make the choice however you want. It does really compress all the self publishing price to be in that two 99, nine 99 range.