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Applies to: 
SQL Server
Azure SQL Database
Merge replication allows you to specify the types of Subscribers that a publication must support. Selecting Subscriber types sets the publication compatibility level, which determines which features can be used by a publication.
After a publication snapshot is created, the publication compatibility level can be increased (made more restrictive) on the General page of the Publication Properties dialog box; the compatibility level cannot be decreased.
Note
Azure SQL Managed Instance can be a publisher, distributor, and subscriber for snapshot and transactional replication. Databases in Azure SQL Database can only be push subscribers for snapshot and transactional replication. For more information, see Transactional replication with Azure SQL Database and Azure SQL Managed Instance.
Options
Select each Subscriber type that this publication must support.
SQL Server
The publication can use all features.
SQL Server Compact
The publication requires snapshot files to be in character format (this is handled automatically by the Snapshot Agent). SQL Server Compact also has a number of restrictions not related to compatibility level.
If this option is selected, the Web synchronization option is enabled for the publication. For more information about Web synchronization, see Web Synchronization for Merge Replication.