Microsoft’s Exchange team has announced a sweeping, tenant-level restriction that will limit outbound email sent from the shared onmicrosoft.com namespace (MOERA — Microsoft Online Email Routing Address) to 100 external recipients per organization per 24‑hour rolling window, and the change comes with a staged rollout that begins with trial tenants in October 2025 and progresses to the largest tenants by June 1, 2026. (techcommunity.microsoft.com)
Every Microsoft 365 tenant is provisioned with a default domain that looks like yourcompany.onmicrosoft.com (or a regional variant such as onmicrosoft.de). These MOERA domains exist to enable immediate connectivity and rapid tenant setup, and they are useful for testing and early-stage configuration. Over time, however, many organizations left MOERA addresses in place as operational sending identities, and attackers repeatedly exploited newly created tenants and the shared namespace to send burst spam and phishing campaigns. The collective result is a degraded reputation for the onmicrosoft.com namespace and measurable impact on deliverability for legitimate tenants that still send from those addresses. (techcommunity.microsoft.com) (proofpoint.com)
Microsoft’s response is surgical: rather than imposing a blanket tenant-level ban, the platform will throttle MOERA-originated outbound traffic to discourage production use while leaving inbound and internal tenant traffic unaffected. This move is explicitly designed to nudge administrators toward adding and using verified custom domains for production email — allowing tenants to own their sending reputation and implement proper authentication (SPF/DKIM/DMARC). (techcommunity.microsoft.com)
0–30 days — Audit & Acquire
Every tenant that still uses an onmicrosoft.com identity for external messaging should treat this announcement as an operational mandate and calendar it as a migration project with the following immediate actions:
The practical truth for administrators: acquiring and configuring a custom domain is inexpensive and straightforward, and the work required to migrate properly will pay dividends in deliverability, brand trust, and operational control. Tenants that delay migration risk unexpected bounces and interruptions — especially those using distribution lists or automations that reach external recipients. Start the inventory now, run a pilot, and move production sending off MOERA well before your tenant’s enforcement window. (techcommunity.microsoft.com, office365itpros.com)
Microsoft’s messaging team framed this change as a nudge toward platform health and better customer outcomes; for administrators, it is a measurable operational priority with a clear mitigation path. The time to act is now.
Source: Microsoft Exchange Team Blog Limiting Onmicrosoft Domain Usage for Sending Emails | Microsoft Community Hub
Background / Overview
Every Microsoft 365 tenant is provisioned with a default domain that looks like yourcompany.onmicrosoft.com (or a regional variant such as onmicrosoft.de). These MOERA domains exist to enable immediate connectivity and rapid tenant setup, and they are useful for testing and early-stage configuration. Over time, however, many organizations left MOERA addresses in place as operational sending identities, and attackers repeatedly exploited newly created tenants and the shared namespace to send burst spam and phishing campaigns. The collective result is a degraded reputation for the onmicrosoft.com namespace and measurable impact on deliverability for legitimate tenants that still send from those addresses. (techcommunity.microsoft.com) (proofpoint.com)Microsoft’s response is surgical: rather than imposing a blanket tenant-level ban, the platform will throttle MOERA-originated outbound traffic to discourage production use while leaving inbound and internal tenant traffic unaffected. This move is explicitly designed to nudge administrators toward adding and using verified custom domains for production email — allowing tenants to own their sending reputation and implement proper authentication (SPF/DKIM/DMARC). (techcommunity.microsoft.com)
What Microsoft is changing — hard facts
The throttle
- Limit: Mail sent from any address in the .onmicrosoft.com namespace will be limited to 100 external recipients per organization per 24‑hour rolling window. Internal traffic remains unaffected. (techcommunity.microsoft.com)
How recipients are counted
- Expansion counts: Recipient counting occurs after distribution-list expansion. Sending one message to a list that expands to 500 external recipients consumes 500 of the 100‑recipient quota. Repeated sends are counted per message (no de‑duplication across sends). (techcommunity.microsoft.com)
Failure behavior
- When the 100‑recipient cap is exceeded, outbound delivery to external recipients from MOERA addresses will be rejected, and senders will receive NDRs (bounce messages) with the SMTP error 550 5.7.236 while the tenant remains throttled. Inbound messages and internal tenant mail are not throttled. (techcommunity.microsoft.com)
Staged rollout
Enforcement is staged by Exchange seat counts. Microsoft will publish Message Center notices one month before each wave; tenants should treat Message Center as the authoritative notification mechanism. The published schedule (subject to Microsoft’s operational updates) is:- October 15, 2025 — Trial tenants
- December 1, 2025 — < 3 seats
- January 7, 2026 — 3–10 seats
- February 2, 2026 — 11–50 seats
- March 2, 2026 — 51–200 seats
- April 1, 2026 — 201–2,000 seats
- May 4, 2026 — 2,001–10,000 seats
- June 1, 2026 — 10,001+ seats. (techcommunity.microsoft.com)
Why Microsoft is acting now
The change addresses a long‑standing anti‑abuse problem: the shared onmicrosoft.com namespace is cheap for attackers to weaponize. Security researchers and vendors have documented campaigns that use throwaway tenants and default domains to send high‑volume spam before detection and remediation can occur. The collateral damage is real — legitimate tenants that still send from MOERA addresses suffer degraded delivery and can be blocked by downstream recipients. Independent security analysis and incident reports have shown examples of such abuse and relay exploitation across the ecosystem. The throttle raises the operational cost of using new tenants for spam, while encouraging tenants to adopt verified, brandable domains they control. (proofpoint.com, office365itpros.com)Who is affected — practical impact
The policy is narrowly scoped (MOERA addresses only), but the operational surface area is broad:- Beneficiaries
- Enterprises and organizations that already send from a verified, custom domain should see little or no direct impact to day-to-day production mail flows, provided they continue using those custom domains. Moving to a custom domain also enables proper DKIM, SPF, and DMARC alignment — improving long‑term deliverability. (techcommunity.microsoft.com)
- At‑risk groups
- Small businesses, nonprofits, hobby projects and trial tenants that never set up a custom domain and use only onmicrosoft.com for external mail will be directly affected. A single distribution send can rapidly exhaust 100 external recipients and trigger bounces.
- Automations and third‑party integrations hard‑coded to use onmicrosoft.com (monitoring alerts, ticketing systems, OTP senders, service accounts) risk silent failures once the tenant is throttled.
- Developers and test environments that target external recipients for verification or testing will be limited early in the rollout (trial tenants are the first wave). (techcommunity.microsoft.com, windowsforum.com)
- Edge cases that require attention
- Sender Rewriting Scheme (SRS) fallbacks: If a tenant keeps MOERA as the default domain, SRS may use MOERA addresses as fallback and cause unexpected external sends.
- Bookings app invites, Microsoft product notifications, and other platform-generated messages can default to MOERA domains unless configured otherwise.
- Federated domains: Federated domains cannot be set as the tenant default — customers using federation must add a non‑federated custom domain to act as the default. (techcommunity.microsoft.com)
Technical implications and operational gotchas
Primary SMTP vs. UPN
Changing a mailbox’s primary SMTP address to a custom domain is straightforward but not inconsequential. Primary SMTP is the address used for outbound mail; the User Principal Name (UPN) used for sign-in may or may not be changed automatically. Misalignment between UPN and primary SMTP can cause login confusion, cached‑credential issues on devices, OneDrive/Teams profile mismatches, and credential resets across apps. Plan reauthentication windows and user communications. (techcommunity.microsoft.com)DKIM/SPF/DMARC alignment
To preserve deliverability when moving to a custom domain, administrators must:- Publish SPF records that include Microsoft 365 and any other sending services.
- Enable DKIM for the custom domain (Microsoft 365 supports DKIM signing for verified domains).
- Implement DMARC in a phased rollout (start p=none → monitor → enforce).
Failing to configure authentication properly after migration can produce new deliverability issues. (techcommunity.microsoft.com, office365itpros.com)
Distribution lists and unexpected expansion
Because the MOERA quota counts recipients after expansion, a single message to a nested distribution list or to an alias that contains external recipients can consume most or all of the 100‑recipient cap. Administrators must audit group membership and dynamic distribution rules to avoid surprise throttling. (techcommunity.microsoft.com)Hybrid and connector routing behavior
Hybrid setups and custom relay configurations can create confusing counting behavior. The policy counts recipients destined to external domains (not in your tenant’s accepted domain list) regardless of routing path. If on‑prem relays or connectors involve fallback to MOERA addresses, those flows may be counted. Test message traces for representative hybrid flows. (techcommunity.microsoft.com)Journaling and Microsoft Exchange Recipient messages
Journaling reports and messages generated by the Microsoft Exchange Recipient address (MicrosoftExchangeRecipientPrimarySmtpAddress) are not counted toward the MOERA throttle because the address is a system setting that tenants cannot alter. Administrators should be aware of which platform-generated messages are excluded. (techcommunity.microsoft.com)High‑volume legitimate sending
If you have legitimate high‑volume transactional or marketing sends, Exchange Online is not the right channel. Move those flows to purpose‑built platforms such as Azure Communication Services for Email or a dedicated email service provider (SendGrid, Amazon SES, SparkPost, etc.). Doing so avoids Exchange rate limits and provides reputation and deliverability tooling. (techcommunity.microsoft.com, office365itpros.com)How to analyze your MOERA traffic and discover risk
Microsoft provides Message Trace in the Exchange Admin Center to retrieve outbound traffic. A common technique is to place a wildcard sender (e.g., *@yourtenant.onmicrosoft.com) in the Senders filter to capture messages sent from MOERA addresses, then filter results by recipient domain to exclude internal traffic. PowerShell can automate and extend this analysis for tenant-wide audits. Administrators should inventory:- Mailboxes and shared mailboxes with onmicrosoft.com as primary SMTP.
- Service accounts, connectors, and apps that send as onmicrosoft.com.
- Distribution groups with external members or dynamic membership that expands externally. (techcommunity.microsoft.com)
A practical 30/60/90‑day migration plan
The following phased plan reduces operational risk and helps avoid surprises when Microsoft enables enforcement for your tenant’s seat tier.0–30 days — Audit & Acquire
- Inventory all senders using onmicrosoft.com (mailboxes, shared mailboxes, connectors, applications, scheduled tasks).
- Identify high‑volume external senders and distribution lists that expand externally.
- Purchase and validate a custom domain with your registrar; add it to Microsoft 365 and verify ownership in the Admin Center.
- Communicate the plan and schedule to stakeholders, and monitor Message Center for your tenant’s enforcement notification. (techcommunity.microsoft.com)
- Add new custom domain aliases to a pilot group of users and service accounts.
- Configure SPF, enable DKIM for the new domain, and start DMARC in p=none to collect reports.
- Update connectors and application SMTP settings to use the custom domain or authenticated relays.
- Test mail flow and conduct external deliverability checks with representative recipients. (techcommunity.microsoft.com)
- Change primary SMTP addresses for remaining users (preserve onmicrosoft.com addresses as secondary aliases during cutover where practical).
- Consider aligning UPNs with the new primary SMTP addresses to reduce user confusion — plan for credential re-authentication and OneDrive/Teams profile impacts.
- Split or move large-list external recipients to an ESP or Azure Communication Services for Email.
- Monitor DMARC aggregate reports, Message Trace, and the Exchange Admin Center for anomalies. (techcommunity.microsoft.com)
Example checklist for developers and applications
- Update hard‑coded email addresses in code, scripts, and third‑party integrations that use onmicrosoft.com.
- Reconfigure monitoring alerts, ticketing systems, and transactional email from service accounts to use a custom domain or authenticated connector.
- Where reconfiguration is impossible, route application sends through an authenticated SMTP connector or a dedicated ESP.
- Verify DKIM signing identity and selectors after migration to ensure the d= value aligns with the custom domain. Misaligned DKIM (signing with d=onmicrosoft.com while sending from a custom domain) can still cause deliverability problems. (techcommunity.microsoft.com)
Relation to other Exchange limits (context)
Microsoft has been rolling out a family of recipient‑rate controls for Exchange Online, including a mailbox‑level External Recipient Rate Limit (ERR / MERRL) that targets 2,000 external recipients per mailbox over 24 hours for certain deployment waves. The MOERA throttle is distinct and much lower (100 external recipients per tenant per day), but it applies only to the shared onmicrosoft.com namespace. If you already send from a custom domain, you will still be governed by the broader ERR/MERRL rules rather than the MOERA cap. Administrators should review both sets of limits as part of their migration planning. (techcommunity.microsoft.com)Strengths, weaknesses, and risk assessment
Strengths
- Targets the core abuse vector — directly raises the cost for throwaway tenant abuse and improves the shared namespace hygiene.
- Encourages best practice — nudges customers to use brand‑owned domains, which enables proper authentication and control over reputation.
- Surgical scope — the throttle is specific to MOERA addresses, minimizing impact on tenants that already use custom domains. (techcommunity.microsoft.com)
Weaknesses & risks
- Collateral disruption risk — legitimate small tenants, nonprofits, and trials that never set a custom domain may experience sudden external mail failures.
- Migration complexity — changing primary SMTP addresses, aligning UPNs, and reconfiguring a patchwork of applications and connectors can be time‑consuming and prone to oversight.
- Edge‑case unpredictability — expansion counting, hybrid routing, and legacy connector behavior can produce surprising quota consumption unless administrators audit thoroughly. (windowsforum.com)
Operational mitigation
- Proactively audit and remediate. The most important single action is to add and validate a custom domain and migrate external sending to that domain. Preserve legacy MOERA aliases as secondary addresses during cutover to minimize authentication fallout. Use staged pilot migrations and maintain robust rollback procedures. (techcommunity.microsoft.com)
Practical Q&A — quick answers to common administrator concerns
- Will internal email continue to work?
Yes — the MOERA cap only applies to external recipients; internal tenant mail is not counted. (techcommunity.microsoft.com) - What NDR will senders see if throttled?
Senders will receive a non‑delivery report with SMTP error code 550 5.7.236 for attempts to send to external recipients from MOERA addresses while the tenant is throttled. (techcommunity.microsoft.com) - How are distribution lists and nested groups counted?
Recipient counts are calculated after expansion; if a list expands to external recipients, every expanded external recipient counts toward the quota. Audit distribution-group membership carefully. (techcommunity.microsoft.com) - What about federated tenants?
Federated domains cannot be set as the default domain; federated customers must add a non‑federated custom domain to act as the tenant default to avoid SRS fallback and other MOERA-related issues. (techcommunity.microsoft.com)
Final assessment and recommended next steps
Microsoft’s MOERA throttling is a pragmatic and narrowly targeted intervention designed to reduce a measurable anti‑abuse problem and improve deliverability for the broader customer base. The policy is consistent with an industry best practice: use a verified, brandable domain for production outbound email. The 100‑recipient cap is low enough to deter abuse but high enough to permit limited testing from MOERA addresses.Every tenant that still uses an onmicrosoft.com identity for external messaging should treat this announcement as an operational mandate and calendar it as a migration project with the following immediate actions:
- Inventory all senders that use onmicrosoft.com.
- Purchase and validate at least one custom domain in Microsoft 365.
- Configure SPF, DKIM, and DMARC for the custom domain and pilot the migration.
- Reconfigure connectors, apps, and automations to send from the custom domain or an authenticated relay/API platform.
- Monitor Message Center for your tenant’s enforcement notification and test thoroughly before your enforcement window begins. (techcommunity.microsoft.com, windowsforum.com)
The practical truth for administrators: acquiring and configuring a custom domain is inexpensive and straightforward, and the work required to migrate properly will pay dividends in deliverability, brand trust, and operational control. Tenants that delay migration risk unexpected bounces and interruptions — especially those using distribution lists or automations that reach external recipients. Start the inventory now, run a pilot, and move production sending off MOERA well before your tenant’s enforcement window. (techcommunity.microsoft.com, office365itpros.com)
Microsoft’s messaging team framed this change as a nudge toward platform health and better customer outcomes; for administrators, it is a measurable operational priority with a clear mitigation path. The time to act is now.
Source: Microsoft Exchange Team Blog Limiting Onmicrosoft Domain Usage for Sending Emails | Microsoft Community Hub