Microsoft Teams has expanded its security and privacy capabilities in several ways that directly address how organizations compare it with Zoom.

The most visible change is the introduction of end-to-end encryption (E2EE) for 1:1 Teams calls. In this first phase:

• E2EE is available for designated users on Teams Desktop first, with plans to extend to more platforms.
• Audio, video, and screen sharing in a 1:1 call can be end-to-end encrypted, meaning no one else — including Microsoft or law enforcement — can access the content of those streams.
• Chat in those calls still uses Teams’ industry-standard encryption in transit and at rest, but is not yet end-to-end encrypted.

Beyond E2EE, Microsoft is layering in additional controls that matter to security-conscious organizations:

• Invite-only meeting controls to reduce the risk of “Zoom-bombing” and keep uninvited guests out of meetings.
• Disable Video for hosts, allowing them to turn off participants’ video to reduce distractions in large meetings or virtual classrooms.
• Safe Links (via Microsoft Defender for Office 365) to scan and verify URLs at the time of click in links shared across Office 365, including Teams.

For compliance and data governance, Teams now also offers:

• Multi-geo support so multinational organizations can control where Teams data is stored — down to the team and user level — to help meet local regulatory and industry requirements.
• Sensitivity Labels integrated with Azure Rights Management to protect and encrypt documents so only authorized viewers can access them, even when shared via links or attachments.
• Shared Channels that let organizations collaborate securely with external customers, partners, and suppliers while controlling how users access data.

Together, these updates are designed to help Teams not just match Zoom on security, but rethink how secure collaboration is managed across meetings, chat, files, and external partnerships.

End-to-end encryption (E2EE) in Microsoft Teams is focused initially on 1:1 calls and is being rolled out in phases so Microsoft can gather customer feedback and align with compliance needs.

Here’s how it works in the first phase:

• Scope: E2EE applies to audio, video, and screen sharing in 1:1 Teams calls for designated users.
• Client-side decryption: The encrypted information is decrypted only on the client device participating in the E2EE communication, and only on that specific device.
• Chat behavior: During an E2EE 1:1 call, users can still chat. Those messages use Teams’ standard encryption in transit and at rest, but they are not end-to-end encrypted yet.

Because stronger security often means giving up some functionality, there are important trade-offs. When E2EE is enabled for a 1:1 call, the following features are not available:

• Call recording
• Live captions and transcription
• Call transfer and call merge
• Call companion and transfer to another device
• Adding a participant (no upgrading to a group call)
• Compliance recording
• File sharing within that call context

From an IT and security perspective, this means:

• E2EE is best suited for highly sensitive 1:1 conversations where privacy outweighs the need for recording or advanced call controls.
• For meetings that require recording, transcription, or compliance capture, organizations may choose to use Teams’ existing encryption model instead of E2EE.

Microsoft positions E2EE as an additional option on top of existing Microsoft 365 encryption capabilities, giving organizations more flexibility to reimagine their security posture based on the sensitivity of each interaction.

Several of the new Microsoft Teams capabilities are aimed directly at organizations that need tighter control over data location, regulatory compliance, and external collaboration.

Key features include:

• Multi-geo support
  Multinational organizations can now control where Teams data is stored, down to the team and user level. This helps firms in specific countries or highly regulated industries like financial services align with local data residency and regulatory requirements.
• Sensitivity Labels with Azure Rights Management
  Teams integrates with Azure Rights Management so you can apply Sensitivity Labels to protect and encrypt documents. Only authorized viewers can access the content, and the protection persists whether the file is shared as an attachment or via a link. This supports consistent data protection policies across Microsoft 365.
• Shared Channels
  Shared Channels allow Teams channels to be shared across multiple organizations. This lets you collaborate with customers, partners, and suppliers while maintaining control over how users access data and information. It’s designed to reshape how cross-company collaboration works without defaulting to email or unmanaged tools.
• Invite-only meetings and Disable Video
  Invite-only controls help ensure that only intended participants can join, reducing the risk of meeting disruptions. The ability for hosts to Disable Video helps manage large meetings or virtual classrooms by minimizing distractions and maintaining a more controlled environment.
• Safe Links in Microsoft Defender for Office 365
  Safe Links adds scanning and time-of-click verification for URLs shared via email and other Office 365 locations, including Teams. This helps protect users from malicious links that might be used in phishing or social engineering attacks.

In practice, organizations can combine these features to:

• Meet data residency and regulatory obligations with multi-geo support.
• Apply consistent information protection policies using Sensitivity Labels and Azure Rights Management.
• Securely extend Teams to external partners via Shared Channels, instead of relying on less controlled tools.
• Reduce meeting risks and distractions with invite-only meetings and host-controlled video.
• Lower exposure to malicious links through Safe Links scanning and verification.

Together, these capabilities help organizations rethink how they govern collaboration in Microsoft Teams, balancing productivity with compliance and security requirements.