Some Microsoft 365 users were unable to encrypt or decrypt protected files and email messages on October 12 after a failure in Microsoft’s Azure Rights Management processing components. The incident is limited to services that rely on those protection features rather than representing a full Microsoft 365 outage.
What happened
The incident was reported on October 12 and was listed as beginning at 09:13 UTC by an outage monitor tracking Microsoft’s service-health information. The incident report said that some components responsible for processing Azure Rights Management requests were unhealthy. Microsoft was attempting to restart the affected components, investigate the cause and assess recovery.
Azure Rights Management is the protection technology used by Microsoft Purview Information Protection. Microsoft says it uses encryption, identity and authorization policies to help secure files and email across platforms and devices. In Microsoft 365, related services can apply encryption and usage restrictions to messages and documents.
Who is affected
The reported impact is limited to users and services that rely on Azure Rights Management. Unprotected documents, email and other Microsoft 365 features may continue to work normally. However, users may be unable to access protected content or protect new files and messages while the service is impaired.
That makes the incident more than a routine application error for organizations that depend on rights-protected documents or encrypted email. A cloud-based protection service can become a dependency for both opening existing content and applying controls to new content.
What administrators can do
- Open the Microsoft 365 admin center and sign in with an account that can view service health.
- Select Health, then Service health, and look for an incident involving Azure Rights Management or protected content.
- Record affected users, files and message workflows, but do not disable protection policies unless Microsoft or the organization’s security team recommends it.
- Follow Microsoft’s incident updates and test access to protected content after the service is reported recovered.
Organizations that depend heavily on protected Microsoft 365 content should maintain documented recovery procedures, clear ownership for encryption policies and a tested communication plan for service disruptions. The incident highlights the tradeoff between centralized cloud-based security controls and dependence on the provider’s availability.
References
- IsDown. (2026, October 12). Some users may be unable to access or protect content using Azure Rights Management (ARM) across Microsoft 365 services. https://isdown.app/status/microsoft365/incidents/668679-some-users-may-be-unable-to-access-or-protect-content-using-azure-rights-management-arm-across-microsoft-365-services
- Microsoft. (2026, February 9). How to check Microsoft 365 service health. Microsoft Learn. https://learn.microsoft.com/en-us/microsoft-365/enterprise/view-service-health?view=o365-worldwide
- Microsoft. (n.d.). Customer-managed encryption features. Microsoft Learn. Retrieved October 12, 2026, from https://learn.microsoft.com/en-us/purview/office-365-customer-managed-encryption-features
- UptimeRobot. (2026, October 12). Microsoft 365 outage on 2026-10-12. https://uptimerobot.com/is-it-down/microsoft-365/2026-10-12/
