@hampton123 The documentation for setting up Azure AD or Azure AD B2C is primarily focused on single tenant scenarios where you are sharing your API with users from your tenant.
Typically, when you are sharing the API with a subscriber, they leverage the Subscription Key and/or Certificate since your API is in most cases being proxied via a custom backend on their end.
For the scenario that you are looking for, where your subscriber's user's also leverage Azure AD (B2C) to access your API (like how Microsoft Graph and other APIs do it), you will need to setup your app registration to be multi-tenant.
So, at a high-level, these are the steps you need:
- Multi-Tenant App Registration in your tenant
- Subscriber consents to your application to register Service Principal in their tenant
- Subscriber registers their own app registration and includes delegated permissions to your API (Refer to this post)
- End Users login to the subscriber's application and then calls your API (still proxied because of the subscription key)
In most cases, this is not what you want unless your API is meant to span across multiple subscriber applications with the user being the same. For example, how Microsoft Graph APIs can be used across any custom application to fetch user details like name, profile picture, etc. or how the Outlook API allows third-party applications to read your email or calendar.