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Microsoft Loop Components: Compliance Issues Explained
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Microsoft Compliance center
Sep 13, 2022 6:00 AM

Microsoft Loop Components: Compliance Issues Explained

by HubSite 365 about Tony Redmond [MVP]

Principal at Redmond & Associates

Pro UserMicrosoft Compliance center

Facing compliance issues with Microsoft Loop Components? Understand the problem and learn how to handle it effectively with our in-depth guide.

Compliance Issues and Challenges with Microsoft Loop Components

Microsoft Loop Components have been recently launched and users are eagerly awaiting its arrival in Outlook Web Access (OWA). However, while the technology offers a lot for the users, there are pressing issues related to eDiscovery and Compliance that need to be addressed.

In essence, compliance Challenges are connected to both Teams and OWA use of Loop components. This problem arises when we create a Loop component that contains a compliance issue in a Teams chat. What happens is that a conversation with potentially fraudulent activity in a Loop paragraph is stored in a fluid file in the originator’s OneDrive for Business account.

Surprisingly, it appears that Teams Data Loss Prevention (DLP) policies currently do not check the content of Loop components. This means that if an organization has a DLP policy in place that should block users from sharing credit card numbers, it efficiently blocks this in regular chats but fails to do so in Loop components.

After a Loop component is created, a compliance issue arises when using the Microsoft Compliance center to search for keywords used in the component. While the search does locate the loop conversation containing the keyword, it fails to support files containing Loop components in the preview mode.

To view the content, one may download a copy, but this presents a new issue as the downloaded file does not contain an extension and cannot be opened unless given a fluid extension and moved to OneDrive for Business. Yet, this operation is neither universal nor feasible for external investigators who may not have access to OneDrive for Business or who wish to work offline.

Compounding the issue, exporting search results presents its own set of problems. The exported file, even if it contains relevant data, can’t be opened directly from its location. Interestingly, the file may be opened if transferred to OneDrive for Business. However, this operation is not always desirable or feasible.

This ongoing issue with Loop components is causing significant concerns for Microsoft. There is now increasing pressure for Microsoft to develop an offline consumable export format for files containing Loop components. If not resolved soon, this could lead to many organizations blocking the use of Loop components altogether.

Furthermore, this challenge will also apply to emails containing embedded Loop component files that are stored in the sender's OneDrive. Permissions will need to be given to all recipients who want to interact with these components. For external email recipients, providing static Loop content may be the feasible solution for now.

The entire scenario presents a significant challenge for Microsoft on compliance and needs an immediate solution.


As Loop components become increasingly integrated into Microsoft 365's collaborative frameworks like Teams and OWA, understanding and addressing compliance issues is vital. While Microsoft explores solutions to allow for static visibility or offline viewing and exportability, organizations and compliance investigators must stay vigilant in managing and reviewing shared content.

Read the full article Microsoft Loop Components have compliance problems?

Microsoft Compliance center - Microsoft Loop Components: Compliance Issues Explained

Learn about Microsoft Loop Components have compliance problems?

In this latest blog post, we delve into a key issue recurring in operations for Microsoft compliance. This piece examines the compliance problems encountered with Microsoft Loop components, touching upon similar challenges present in Teams and the Outlook Web App (OWA).

Within the realm of Microsoft’s integrated software, the announced support for Loop components in OWA, as stated in MC360766, has been greatly anticipated. Yet, the post underlines compliance and eDiscovery issues that have led some organizations to halt the use of Loop components until full solutions are provided. The issue extends to Loop components created through the Teams chat feature.

We can dissect the problem by looking at a case where a compliance issue arises in a Loop component posted in a Teams chat. This scenario involves a conversation regarding potential fraudulent activity within a Loop paragraph. The storage for this component comes from a fluid file nested in the originator’s OneDrive for Business account. Teams privacy settings do not currently review Loop component contents, which can become a loophole if an organization deploys a Data Loss Prevention policy.

Let's take a realistic look at how to search for problematic Loops. The procedure starts at the Microsoft Purview Compliance portal, where one could create a content search for any file or email containing a keyword. The system would find any items related to this keyword, however, in a discussion regarding Loop components, the compliance records do not appear in the search results.

The blog post also discusses how one can access the content of Loop components. Despite the error displayed by content search preview for files containing Loop components, the content can still be viewed. However, the process requires the file to be downloaded and given a fluid extension, then moved to a OneDrive for Business account before viewing it, all on a one-by-one basis.

After usage of search preview which will show what to expect when the search is run, the next step for compliance investigators is to export the search results. However, the exported fluid files need to be copied to a OneDrive for Business account which can be a challenge for external investigators and experts who may not have access to OneDrive for Business or want to work offline.

Furthermore, examining Microsoft's proposed resolutions to the compliance problems is critical. Microsoft is planning on creating “an offline consumable export format”, potentially similar to a PDF version of the files. This response signifies their commitment in improving the functionality of their applications as well as user experience.

The post also acknowledges that similar problems may arise in emails with embedded Loop components. These files would likely be kept in the sender’s OneDrive for Business account with permissions granted to all recipients to interact with the components. Such issues pose a challenge that Microsoft has to address.

Finally, we should note that understanding this technology requires in-depth knowledge and the ability to look behind the scenes. The team behind Office 365 for IT Pros brings the knowledge and experience necessary to navigate Office 365 and the wider Microsoft 365 ecosystem.

More links on about Microsoft Loop Components have compliance problems?

Why Loop Components Have Some Compliance Problems
May 12, 2022 — However, under the covers, some compliance issues can block organizations from allowing the use of Loop components.
Why Loop Components Have Some Compliance Problems
May 12, 2022 — First, we create a compliance issue in a Loop component posted in a Teams chat. In this case, it's a conversation about potentially fraudulent ...
Microsoft Loop Considerations for eDiscovery and Compliance
Apr 3, 2023 — The problem is that Loop components are saved as custom independent files in OneDrive, and once collected, there is no way to review the ...


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