Azure API Management (APIM) provides a powerful policy pipeline for controlling API traffic. Inbound policies execute before requests reach backend services, enabling validation, rate limiting, header manipulation, and JWT authentication. Outbound policies process responses before returning to clients, allowing response transformation, header addition, and error handling. The policy system uses XML-based configuration with flexible expressions and conditions. Common use cases include securing partner APIs with quotas, transforming data formats, and protecting backend services while maintaining performance.
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