How to Create an Entra ID B2B Collaboration Policy

Deny Guests from Some Domains or Use an Allow List

Updated: 5 September 2023

The ability for applications to use Entra ID B2B collaboration to add guest users is governed by external collaboration settings, aka the Entra ID B2B collaboration policy (previously the Azure AD B2B Collaboration policy). The settings are available through the External identities section of the Entra ID admin center, where they are found under Collaboration restrictions (Figure 1).

Three options are available:

• Allow guest accounts from any external domain. This is the default.
• Deny access to guest accounts from specified domains (deny list).
• Allow access only to guest accounts from specified domains (allow list).

The total size of the policy must be less than 25 KB (25,000 characters). Each domain in an allow or deny list counts against the limit as do other policy settings. Allowing 1,000 bytes for all other settings, an average of 15 characters per domain means that an allow or deny list can accommodate up to 1,600 domains. You can only choose to have a policy with an allow or a deny list and cannot have some domains in a deny list and others in an allow list.

In my case, I use the middle approach to block guest accounts from certain domains. For instance, these might be domains belonging to direct competitors or domains used for consumer rather than business purposes. In Figure 1, you can see that I’ve decided to block access to guests with Google.com and Yahoo.com email addresses.

Entra ID Blocks Bad Guests

Entra ID applies the block rather than applications. For example, in Figure 2, I’ve tried to add a new guest account to Teams, which doesn’t object when I enter tredmondxxxx@yahoo.com to identify the guest. The block descends when Teams tries to create the new guest account in Entra ID. The “Something went wrong” is an uncertain error, but it should be enough for the administrator to know what’s going on when they learn where the guest comes from. OWA doesn’t object to the email address for a new guest but is no more definite in its error (Figure 3). Again, this is because the application fails to create a new guest account in Entra ID.

Knowing What Domains Guests Come From

Before going ahead to update your external collaboration settings, it’s a good idea to understand where current guest accounts come from. This code scans down through guest accounts found in Entra ID to capture details of each user’s home domain. It then populates a hash table with the domain information to create a count for each, followed by sorting in descending order to discover the most popular domains:

$Domains = [System.Collections.Generic.List[Object]]::new()
Connect-MgGraph -NoWelcome -Scopes Directory.Read.All
[array]$Guests = (Get-MgUser -All -Filter "UserType eq 'Guest'" | Select-Object Displayname, UserPrincipalName, Mail, Id | Sort DisplayName)

ForEach ($Guest in $Guests) {
   $Domain = ($Guest.UserPrincipalName.Split("#EXT#")[0]).Split("_")[1]
   $Domains.Add($Domain)
}

$DomainsCount = @{}
$Domains = $Domains | Sort-Object
$Domains | ForEach {$DomainsCount[$_]++}
$DomainsCount = $DomainsCount.GetEnumerator() | Sort-Object -Property Value -Descending
$DomainsCount


Name                           Value
----                           -----
microsoft.com                  59
outlook.com                    11
quest.com                      6
hotmail.com                    5
gmail.com                      4
emea.teams.ms                  4

Now you know what domains are actively in use, you can decide which you might like to ban. Remember that putting a domain on the deny list stops only the creation of new guest accounts. Existing guest accounts remain in the membership of groups and teams. If you want to purge accounts from unwanted domains, you need to find the groups (teams) with guest members and examine each guest to decide if they can stay or be removed. It’s easy enough to find guests from banned domains with PowerShell, or so the saying goes…

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