Enabling privacy mode for Microsoft Teams to hide presence information for external federated contacts

One of the most common questions I am asked about Teams is whether there is a way to hide an organization’s presence information from externally federated domains as the default is to display the status. The short answer is yes and it is configurable for the organization via PowerShell. Trying to research the appropriate cmdlets can be a bit confusing because the legacy Skype for Business Online cmdlet to use is actually the following from Skype for Business Online:

Set-CsPrivacyConfiguration

https://docs.microsoft.com/en-us/powershell/module/skype/set-csprivacyconfiguration?view=skype-ps

Note that the Applies to does not have Teams listed:

Although Teams is not listed, you can still use this cmdlet to enable privacy mode by executing the following:

Import-Module SkypeOnlineConnector

$session = New-CsOnlineSession

Import-PSSession -Session $session

Set-CsPrivacyConfiguration -EnablePrivacyMode $true

With the configuration set, external federated contacts should no longer see the presence status of the users in this organization: