In the screenshot above, you can see when a site owner or member tries to share a document, the “Anyone with the link” option is greyed out and if you can see from the tooltip the error says “Your organization is preventing you from selecting this option“. The first places to check as an administrator are your Sharepoint and OneDrive Admin Centers. If everything is set correctly and you still can’t select the Anyone With The Link option, then we have to turn to Powershell. If the Sharepoint Online site was created as a part of an Office 365 Group or Team, those sites come with more restrictive sharing options than a standard Sharepoint Online site and require you to use Powershell to make the change because there’s no GUI option for it.
Check Your Sharepoint and OneDrive Admin Centers
You’ll first want to check the sharing options in these admin centers before moving onto the next step.
In the OneDrive Admin Center, click on Sharing Under Links, make sure the radio button is on Shareable: Anyone with the link as seen in the screenshot below
In the Sharepoint Admin Center, click on Sharing Under Sharing outside your organization, make sure the radio button is on Allow sharing to authenticated external users and using anonymous access links as seen in the screenshot below
Powershell Sharing Setting Using Sharepoint Online Management Shell
If the above settings are correct in your admin centers and the Sharepoint Online site was created using an Office 365 Group or Team, then you’ll need to use this Powershell command to enable external sharing.
First, if you haven’t already done so, you’ll need the Sharepoint Online Management Shell. You can download and install it from Microsoft
Next, open the Sharepoint Online Management Shell
If you’re not already connected, you’ll need to run Connect-SPOService and authenticate to your site You’ll need to use the tenant admin URL like https://contoso-admin.sharepoint.com
Finally, you’ll want to run Set-SPOSite -Identity https://contoso.sharepoint.com/sites/site1 -SharingCapability ExternalUserAndGuestSharing to enable external and guest sharing Replace the Identity URL with your site. Make sure there’s no trailing slash in your URL
If you don’t know your specific site URL, you can run Get-SPOSite to get a list of all sites managed by the admin tenant you’re signed into.
If you refresh your Sharepoint/Onedrive site, you should now be able to share using Anyone with this link.