DST16600 - Underlying Technology

Some websites have ‘search boxes’ which display search results from external or unrelated websites. In many cases, the search technology will be provided by a third party.

This raises the question whether the internet search engine is provided by the host or the third party.

This will depend on the specific facts of the arrangement. However, HMRC would typically expect that it is the third party which is providing the internet search engine. This is because it is the third party which is performing the search activity utilising its search technology. It will often utilise similar technology in its own internet search engine business.

In contrast, the host is not actively contributing to the search activity. Its role is passive and is essentially no different to the role a publisher plays in providing advertising space on its website for display adverts.

Example A

Business A originally operated an internet search engine.

In recent years, Business A has shifted focus away from the search engine business and has acquired other digital services including advertising networks. The brand of Business A is still closely associated with the search engine and it still provides a search engine portal. However, the actual search technology is contracted out to an unrelated third-party. The third-party also controls the advertising contracts with advertisers.

In this example, Business A does not provide a search engine. While users may perceive that Business A is a search engine provider, it does not perform any of the actual search function itself. It is comparable to a website that allows a search engine provider to provide an internal search function. As such, Business A is not providing an internet search engine.