TL:DR - It's freemium.
There's some false assumptions there - for example, Analytics (originally Urchin) has a premium version that can cost anywhere from $45k a year or up. The free version is just advertising for that.
The same goes for Google Tag Manager and other Google products like Data studio or Optimizely. There is a premium version with expanded functionality beyond the 'free' version. If your company becomes reliant on the free version then it's very likely once you have the budget and need for something more, upgrading the environment you're currently developing in is the best choice.
Answer from L Martin on Stack ExchangeAnyone Explain Google Tag Manager to me Please in Simple
Is Google Tag Manager a necessity in my website? Are there any other vital components I'm missing?
Anyone got work to offer? Will be willing to do for Free
Is Google Tag Manager worth it?
It’s free, so yes.
The time needed to get GTM up and running is negligible and gives you way more control over tracking pretty much anything you need to.
Purchase? Done. Form submission? Tick. Scroll depth? Straightforward.
You can then push the data into GA / Ads / FB / wherever you want to, and customise it however you want.
There’s a bit of a learning curve for the more complex stuff (if you know JS you’ve got a huge head start) but the basics are really easy.
Finally, if you want to get really good just read Simo’s blog (simoahava.com).
More on reddit.comI'm New to Google Tag Manager