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New B2C Tenant Creation Blocked – Entra External ID Missing Federation and Custom Policy Support

Steve 50 Reputation points
2025-06-16T15:16:04.71+00:00

Hi,

I've just discovered that I can no longer create an Azure AD B2C tenant in my organization's directory. I've been experimenting with B2C in my personal MSDN subscription to evaluate it as a potential replacement for our custom IdentityServer based solution. However, when I tried to create a new B2C tenant under my company's directory, I received an error stating that new B2C tenants cannot be created after May 1st.

I've looked into Microsoft Entra External ID for Customers as an alternative, but it currently lacks several key features we rely on:

  • No support for federation with external Microsoft Entra tenants.
  • Limited flexibility in customizing the sign-in flow.

In my Azure AD B2C proof of concept, I was able to configure a custom policy that auto-provisioned users in the tenant if they didn't already exist but could be authenticated by our legacy IdentityServer IDP.

Is there any way to regain the ability to create Azure AD B2C tenants, given that Microsoft Entra External ID isn’t a viable alternative for us due to these missing capabilities?

Thanks,

Steve Harper

Microsoft Security | Microsoft Entra | Microsoft Entra External ID
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  1. Sanoop M 4,345 Reputation points Moderator
    2025-06-17T02:23:05.5866667+00:00

    Hello Steve,

    Please note that as of May 1, 2025, Microsoft has stopped allowing the creation of new Azure AD B2C tenants for new customers. This means that if you are trying to create a new Azure AD B2C tenant under your organization's directory after this date, you will encounter an error because the service is no longer available for new purchases. Azure AD B2C end of sale

    Effective May 1, 2025 Azure AD B2C will no longer be available to purchase for new customers, but current Azure AD B2C customers can continue using the product. The product experience, including creating new tenants or user flows, will remain unchanged. The operational commitments, including service level agreements (SLAs), security updates, and compliance, will also remain unchanged. We'll continue supporting Azure AD B2C until at least May 2030. More information, including migration plans will be made available. Contact your account representative for more information and to learn more about Microsoft Entra External ID.

    Nothing changes for existing B2C customers on May 1 (B2C tenant creation closed only to new customers)

    Existing customers can continue to run B2C and create new B2C tenants, no action needed.

    Please refer to the below FAQ document regarding Azure AD B2C End of sale.

    Frequently asked questions (FAQ) for Azure Active Directory B2C

    I hope the above provided information is helpful. Please let me know if you have any clarifications or any additional queries.

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