I created several feature service for a department in my organization, then I created a map on our internal portal. The aim is to allow them access to the data in this format but has all the functionality as if it were a shapefile, except I don not want them to be able to extract out or export the data. Is there a way to prevent this?
You would need to edit the Feature Access properties within the Service Editor. There is an Extract operation that you can disable.
No, any data which can be opened in ArcMap and the user has permissions to view, can be exported out as well.
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For the users you don't want to give the extracting capability, just share another Map Service (using an identical map document) with Feature Access capability disabled while publishing.