How Do You Block Entra Self-Service Sign-Up for contoso.com?

Configure and manage a Microsoft Entra tenant Implement and manage identities for external users and tenants
Answer Correct answer: A — Update-MgPolicyAuthorizationPolicy with AllowedToSignUpEmailBasedSubscriptions set to False blocks self-service sign-up in the contoso.com tenant.

You have a Microsoft Exchange organization that uses an SMTP address space of contoso.com. Several users use their contoso.com email address for self-service sign-up to Microsoft Entra. You gain global administrator privileges to the Microsoft Entra tenant that contains the self-signed users. You need to prevent the users from creating user accounts in the contoso.com Microsoft Entra tenant for self-service sign-up to Microsoft 365 services. Which PowerShell cmdlet should you run?

  1. Update-MgPolicyAuthorizationPolicy Correct Answer
  2. Update-MgDomain
  3. Update-MgPolicyPermissionGrantPolicyExclude
  4. Update-MgDomainFederationConfiguration

Community Votes

A
100%

100% of anonymous learners picked answer A. Votes are pick records left by other test-takers — they are not the verified answer.

Community Insight

The question tests whether you know that email-verified self-service sign-up is governed by the tenant-wide authorization policy object, not by the verified domain object or any consent/federation policy.

Microsoft 365 email-based self-service sign-up lets users with a contoso.com address create accounts in your Microsoft Entra tenant without an invitation. This page confirms that Update-MgPolicyAuthorizationPolicy, with AllowedToSignUpEmailBasedSubscriptions set to False, is the cmdlet that blocks those sign-ups tenant-wide.

Choosing Update-MgDomain, because the scenario centers on the contoso.com domain; however, domain cmdlets only manage ownership, default status, supported services and authentication type — they cannot disable email-based self-service sign-up.

Community Discussion (3 comments)

JFROG 👍 1 Selected: A
I agree with A.Check https://learn.microsoft.com/en-us/microsoft-365/commerce/subscriptions/manage-self-service-signup-subscriptions?view=o365-worldwide#block-users-from-signing-up
anonymousarpanch 👍 1 Selected: A
. Allows to set guest user access level for tenant Lookout for update-mgpolicyauthorizationpilicy
northgaterebel 👍 2 Selected: A
A is correct. Use the "Update-MgPolicyAuthorizationPolicy" cmdlet with the "AllowedToSignUpEmailBasedSubscriptions" parameter set to False. https://learn.microsoft.com/en-us/entra/identity/users/directory-self-service-signup

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Expert Analysis

Why the Answer Is Correct

Email-verified self-service sign-up for Microsoft 365 services is a tenant-level directory setting stored on the authorization policy object, which is why Update-MgPolicyAuthorizationPolicy is the required cmdlet. Setting the AllowedToSignUpEmailBasedSubscriptions property to False stops new users whose address matches a verified domain such as contoso.com from creating accounts through the automated sign-up flow. This is the Microsoft Graph equivalent of the older Set-MsolCompanySettings -AllowEmailVerifiedUsers $false command, and it is the exact control Microsoft documents for blocking self-service sign-up. Note that the change is forward-looking: it prevents new sign-ups but does not delete accounts that were already created, which must be cleaned up separately. The suggested answer key and the community's unanimous vote both agree on this cmdlet.

Why the Other Options Are Wrong

Update-MgDomain edits properties of a verified domain object — isDefault, supportedServices, authentication type or password notification window — and has no parameter that disables self-service sign-up, so it cannot satisfy the requirement even though the scenario mentions contoso.com. Update-MgPolicyPermissionGrantPolicyExclude modifies a permission grant policy that governs which delegated permissions are excluded from user consent for OAuth applications, a completely different control plane. Update-MgDomainFederationConfiguration configures federation settings such as the passive or active sign-in URI for a federated domain and applies only when the domain is federated rather than managed. None of these three touch the email-verified sign-up setting, so none of them prevent contoso.com users from creating accounts.

Community Comment Notes

As northgaterebel explained, the fix is to run Update-MgPolicyAuthorizationPolicy with "AllowedToSignUpEmailBasedSubscriptions" set to False and links the Microsoft Learn self-service sign-up article. JFROG concurs and points to the Microsoft 365 documentation section on blocking users from signing up, which reinforces that this is a tenant-wide subscription sign-up control rather than a domain setting. anonymousarpanch also selected the authorization policy cmdlet, describing it as the place where tenant-level settings such as guest access are adjusted — a reminder that one policy object carries several tenant-wide switches, so reading the parameter list carefully matters. There are no dissenting comments, so the consensus is unambiguous.

Official Reference

Exam Strategy

When an SC-300 item asks you to stop email-verified (self-service) sign-ups, map the requirement to tenant-wide directory/authorization settings rather than to the domain, consent or federation cmdlets. Remember the trio: Update-MgPolicyAuthorizationPolicy for the tenant-level switches, Update-MgDomain for domain properties, and the permission grant policy cmdlets only for OAuth consent.

Frequently Asked Questions

Does Update-MgPolicyAuthorizationPolicy delete the accounts already created by self-service sign-up?

No. Setting AllowedToSignUpEmailBasedSubscriptions to False only prevents future email-verified sign-ups; existing accounts in the contoso.com tenant must be removed separately.

Why is Update-MgDomain not enough to stop contoso.com self-service sign-up?

Update-MgDomain only changes domain properties such as default status, supported services and authentication type. Email-based self-service sign-up is a tenant-wide authorization policy setting instead.

What is the legacy equivalent of this Graph cmdlet?

The older MSOnline command Set-MsolCompanySettings with -AllowEmailVerifiedUsers $false performs the same block for email-verified self-service sign-up before the Graph migration.

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