In this article I'll explain how to achieve that using Azure Conditional Access Policies and Defender for Cloud Apps policies
Steps in Conditional Access Policies
Step 01: Navigate to Azure AD and then to Security Section
Step 02: Navigate to Conditional Access Policies
Step 03: Create a new policy
Step 04: Assign Users. I've assigned all users
Step 05: Select SharePoint Online
Step 06: Navigate to Session section and select Use conditional access app control and use custom policy option
Then I will click on configure custom policy section. It will bring me to Microsoft Defender for Cloud Apps application.
Steps in Microsoft Defender for Cloud Apps
Step 01: You can see SharePoint online in conditional access app control apps section, we created this in previous step in Azure AD
Step 02: Navigate to Control, Policies and create a new policy
Step 03: We will set Control file upload in Session control type drop down
Step 04: We will provide SharePoint Online as the Activity source
Step 05: Add a filter for the policy
Step 06: We will provide Block option in Actions section with a proper message
That's all we have to do. Let's try this out
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