Office for the web now supports applying sensitivity labels with user-defined permissions in Word, Excel, and PowerPoint. This update is only available in tenants where co-authoring on files encrypted with sensitivity labels has been enabled.
Timeline
The rollout should be completed by June 2026.
How does this affect your organization?
Previously, when users applied a sensitivity label with user-defined permissions to documents in Office for the web, the browser displayed a message indicating that this was not supported. The capability was limited to the desktop clients.
Now, users can apply such sensitivity labels directly in the web editions of Word, Excel, and PowerPoint. The permissions dialog in Office for the web aligns with the modernized dialog introduced in Word, Excel, and PowerPoint for Windows in July 2024.
This update requires enabling co-authoring for files encrypted with sensitivity labels.
The feature respects all existing label configurations and does not alter how previously labeled files behave or how existing permissions are enforced. It also has no effect on sensitivity labels that use admin-defined permissions.
