Follow the below steps to disable the sharing option for outside your organization,

Step 1: Go to SharePoint Admin center
Step 2: Select the site collection and select the Sharing from ribbon
Step 3: From the Sharing dialog box, select “Don’t allow sharing outside your organization

Disable External Sharing
Disable External Sharing

Step 4: Click Save.
Step 5: Click OK in alert message.
In few seconds, the settings will updated to the Site Collection

Do you want to restrict the sharing option for outside your organization?
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