This tech community post says that :
- SharePoint Online service supports Azure Information Protection encryption on document upload, understands label policies applied to the document, and applies label permissions to document open when the document is in SharePoint or OneDrive.
- When the document is downloaded from SharePoint or OneDrive, the document is protected by the label, so the protection continues to travel with the document.
- Users can now open, edit and co-author a protected document in Office Online if the label policy allows.
https://techcommunity.microsoft.com/t5/Microsoft-SharePoint-Blog/Updates-to-SharePoint-security-administration-and-migration/ba-p/549585
But, I am unable to find any change while trying to view/open/edit documents in online applications. Anyone of you tried this recently ?
Thanks,
Pradeep