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I have a site collection where external sharing is activated. My admin user can share files and folders externally with no problem. However the normal users (Within my organisation) don't seem to have the option to share with external users - they do however have the option to share with other users within the organisation. What am I missing here?

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Ah digging a bit more around I figured it out. It seems the option to allow non-owners can be set on multiple levels not just the Site collection level. For reference see this anwser: SharePoint Online : Turn on "Allowing non-owners to invite new users"

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