Forum Discussion
How to stop end user creating public groups in office 365
To answer the additional questions,
1) You cannot limit users to creating just Private groups. It's all or nothing.
2) No, only the default limits apply, we cannot define any additional ones.
3) DG creation settings are not related to the O365 Group creation ones. The former are indeed controlled by the OWA policies. Removing those two checkboxes will however disallow users to manage existing groups they own, which might not be the desired behavior. If you only want to block creation of DGs, a better approach is to create a new OWA policy and remove the New-DistributionGroup from it.
nipW You should check out https://docs.microsoft.com/en-us/microsoftteams/platform/samples/app-templates#request-a-team with code available on Github. You can turn off the ability for people to create Teams in the admin center and instead pin this app on the left rail of Teams that people can use to create new Teams. You can add an approval process using Power Automate that will not create a Public Team unless it is approved by whomever you decide needs to approve such requests or you can simply not allow the creation of a Public Team ever with this app. You can also manage who can have external guests in their Teams as well as enforce naming standards, e.g. putting External in the name of an Team with external guests. This is a free way to get some governance around Teams creation. It will also make sure every Team has at least 2 owners.