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Yes you can.

User signs up, uses @outlook. Your app declines it and explains that they block with no way to remedy, and explain they are a bad vendor.

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Deeply unserious take.
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As unserious as you claim, we had this exact problem.

Emails would be accepted by Outlook.com, but would never deliver. We had SPF/DKIM/DMARC and full reporting. They RBL'ed us with no remedy.

We told the customer to not use outlook.com BECAUSE we told them we could not guarantee any delivery of messages.

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