In a business setting, there are few reasons to share business files using links that are accessible to anyone on the Web. Anonymous access to SharePoint files does not allow proper user identification and tracking. It makes it very difficult to investigate data extraction.

This setting will prevent users from using the "Anyone with the link" sharing option with SharePoint files and folders.

In the Set section, you can configure one of the following options when you apply the setting:

  • Only Users in the OrganizationNo external sharing allowed. Although we recommend allowing sharing files only to people in your organization, it may disrupt your users' workflow.
  • Existing Guests Only: Files can only be shared with guests who already exist in your organization's Azure Active Directory.
  • All Guests Sharing: Content can be shared with guests who must sign in or provide a verification code.
  • Anonymous Sharing: Users can share files and folders using links that don't require sign-in.

This setting is available in the Microsoft 365 SharePoint admin center, in Policies > Sharing.

Microsoft documentation about SharePoint guest sharing: