I suppose you could argue the services aren't really free, it's just that advertisers pay for them and not the users directly. So Google isn't really providing a service below marginal cost as long as the marginal revenue of advertising is enough to cover it.
http://www.computerworlduk.com/news/it-business/3334934/goog...
I suppose you could argue the services aren't really free, it's just that advertisers pay for them and not the users directly. So Google isn't really providing a service below marginal cost as long as the marginal revenue of advertising is enough to cover it.