Hello,
Yes, Azure Media Services has its own license service. This is the default mode. See the "license delivery service" block in the diagram on https://learn.microsoft.com/en-us/azure/media-services/latest/content-protection-overview. The license URL is exposed in the manifest.
If you want to use another license server, follow the steps on https://learn.microsoft.com/en-us/azure/media-services/latest/content-protection-overview#custom-key-and-license-acquisition-url