Guest Tenant Users Unable To Apply Sensitivity Labels

[AntDigi]

Hi all, I'm struggling to enable Guest Users to apply Sensitivity labels when they collaborate on documentation hosted within a host O365 tenant e.g. via SharePoint Online or OneDrive For Business. 

The Sensitivity button for applying the labels for Desktop apps is greyed out, and for Office Online apps it is not appearing for the guest users.

I've published a Label Policy to a test group of users from the host tenant as well as the guest users via the O365 Security & Compliance admin center. The labels appear and work as expected for the host users. Both the host and Guest Users in question are using Microsoft 365 Apps for enterprise subscriptions. 

Having read through some Microsoft documentation it appears this functionality should work. 

Has anyone encountered this problem before or can offer a solution?

Thanks.

[#2 · Accepted solution]

Guest users cannot apply labels, they can just "consume" classified/protected content.

[#3]

@VasilMichev Thanks for the quick reply. Do you know if it is possible for a Sensitivity label to be automatically applied when a keyword is entered whilst using Office Online apps (for tenant and/or guest users)?

Through my testing I can only get a Sensitivity label auto applied for non-guest users via the Unified Labelling client. 

[#4]

Well Microsoft actually requires a license for automatic labeling, so the reasons here might not be (just) technical. Although I can agree how this is a problem, but it wont be the first questionable decision on licensing...