diff --git a/update_manager/chromeos_policy.cc b/update_manager/chromeos_policy.cc
index 86a2dc4..c2026b2 100644
--- a/update_manager/chromeos_policy.cc
+++ b/update_manager/chromeos_policy.cc
@@ -278,7 +278,8 @@
   result->update_can_start = true;
   result->cannot_start_reason = UpdateCannotStartReason::kUndefined;
   result->download_url_idx = -1;
-  result->p2p_allowed = false;
+  result->p2p_downloading_allowed = false;
+  result->p2p_sharing_allowed = false;
   result->do_increment_failures = false;
   result->backoff_expiry = update_state.backoff_expiry;
   result->scatter_wait_period = update_state.scatter_wait_period;
@@ -317,22 +318,6 @@
     return backoff_url_status;
   }
 
-  // Check whether P2P has reached its number of attempts and/or time limits. In
-  // which case, set a flag preventing us from enabling P2P later on.
-  bool is_p2p_blocked = false;
-  if (update_state.p2p_num_attempts >= kMaxP2PAttempts) {
-    is_p2p_blocked = true;
-    LOG(INFO) << "Blocking P2P as it's been attempted too many times.";
-  } else if (!update_state.p2p_first_attempted.is_null()) {
-    Time p2p_expiry = (
-        update_state.p2p_first_attempted +
-        TimeDelta::FromSeconds(kMaxP2PAttemptsPeriodInSeconds));
-    if (ec->IsWallclockTimeGreaterThan(p2p_expiry)) {
-      is_p2p_blocked = true;
-      LOG(INFO) << "Blocking P2P as its usage timespan exceeds the limit.";
-    }
-  }
-
   DevicePolicyProvider* const dp_provider = state->device_policy_provider();
 
   const bool* device_policy_is_loaded_p = ec->GetValue(
@@ -381,31 +366,47 @@
     // Determine whether use of P2P is allowed by policy. Even if P2P is not
     // explicitly allowed, we allow it if the device is enterprise enrolled
     // (that is, missing or empty owner string).
-    if (!is_p2p_blocked) {
-      const bool* policy_au_p2p_enabled_p = ec->GetValue(
-          dp_provider->var_au_p2p_enabled());
-      if (policy_au_p2p_enabled_p) {
-        result->p2p_allowed = *policy_au_p2p_enabled_p;
-      } else {
-        const string* policy_owner_p = ec->GetValue(dp_provider->var_owner());
-        if (!policy_owner_p || policy_owner_p->empty())
-          result->p2p_allowed = true;
-      }
+    const bool* policy_au_p2p_enabled_p = ec->GetValue(
+        dp_provider->var_au_p2p_enabled());
+    if (policy_au_p2p_enabled_p) {
+      result->p2p_sharing_allowed = *policy_au_p2p_enabled_p;
+    } else {
+      const string* policy_owner_p = ec->GetValue(dp_provider->var_owner());
+      if (!policy_owner_p || policy_owner_p->empty())
+        result->p2p_sharing_allowed = true;
     }
   }
 
   // Enable P2P, if so mandated by the updater configuration. This is additive
   // to whether or not P2P is allowed per device policy (see above).
-  if (!(is_p2p_blocked || result->p2p_allowed)) {
+  if (!result->p2p_sharing_allowed) {
     const bool* updater_p2p_enabled_p = ec->GetValue(
         state->updater_provider()->var_p2p_enabled());
-    result->p2p_allowed = updater_p2p_enabled_p && *updater_p2p_enabled_p;
+    result->p2p_sharing_allowed =
+        updater_p2p_enabled_p && *updater_p2p_enabled_p;
+  }
+
+  // Finally, download via P2P is enabled iff P2P is enabled (sharing allowed),
+  // an update is not interactive, and other limits haven't been reached.
+  if (result->p2p_sharing_allowed) {
+    if (update_state.is_interactive) {
+      LOG(INFO) << "Blocked P2P download because update is interactive.";
+    } else if (update_state.p2p_num_attempts >= kMaxP2PAttempts) {
+      LOG(INFO) << "Blocked P2P download as it was attempted too many times.";
+    } else if (!update_state.p2p_first_attempted.is_null() &&
+               ec->IsWallclockTimeGreaterThan(
+                   update_state.p2p_first_attempted +
+                   TimeDelta::FromSeconds(kMaxP2PAttemptsPeriodInSeconds))) {
+      LOG(INFO) << "Blocked P2P download as its usage timespan exceeds limit.";
+    } else {
+      result->p2p_downloading_allowed = true;
+    }
   }
 
   // Store the download URL and failure increment flag. Note that no URL will
   // only terminate evaluation if no other means of download (such as P2P) are
   // enabled.
-  if (result->download_url_idx < 0 && !result->p2p_allowed) {
+  if (result->download_url_idx < 0 && !result->p2p_downloading_allowed) {
     result->update_can_start = false;
     result->cannot_start_reason = UpdateCannotStartReason::kCannotDownload;
   }
diff --git a/update_manager/chromeos_policy.h b/update_manager/chromeos_policy.h
index e3e9c5f..5108bc2 100644
--- a/update_manager/chromeos_policy.h
+++ b/update_manager/chromeos_policy.h
@@ -86,9 +86,9 @@
   FRIEND_TEST(UmChromeOSPolicyTest,
               UpdateCanStartAllowedInteractivePreventsScattering);
   FRIEND_TEST(UmChromeOSPolicyTest,
-              UpdateCanStartAllowedP2PBlockedDueToNumAttempts);
+              UpdateCanStartAllowedP2PDownloadBlockedDueToNumAttempts);
   FRIEND_TEST(UmChromeOSPolicyTest,
-              UpdateCanStartAllowedP2PBlockedDueToAttemptsPeriod);
+              UpdateCanStartAllowedP2PDownloadBlockedDueToAttemptsPeriod);
 
   // Auxiliary constant (zero by default).
   const base::TimeDelta kZeroInterval;
diff --git a/update_manager/chromeos_policy_unittest.cc b/update_manager/chromeos_policy_unittest.cc
index b99074c..443a298 100644
--- a/update_manager/chromeos_policy_unittest.cc
+++ b/update_manager/chromeos_policy_unittest.cc
@@ -494,7 +494,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded,
                      &Policy::UpdateCanStart, &result, update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
+  EXPECT_FALSE(result.p2p_downloading_allowed);
+  EXPECT_FALSE(result.p2p_sharing_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -512,7 +513,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded,
                      &Policy::UpdateCanStart, &result, update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
+  EXPECT_FALSE(result.p2p_downloading_allowed);
+  EXPECT_FALSE(result.p2p_sharing_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -949,7 +951,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_TRUE(result.p2p_allowed);
+  EXPECT_TRUE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -971,15 +974,18 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_TRUE(result.p2p_allowed);
+  EXPECT_TRUE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
 }
 
-TEST_F(UmChromeOSPolicyTest, UpdateCanStartAllowedP2PBlockedDueToNumAttempts) {
+TEST_F(UmChromeOSPolicyTest,
+       UpdateCanStartAllowedP2PDownloadBlockedDueToNumAttempts) {
   // The UpdateCanStart policy returns true; device policy permits HTTP but
-  // blocks P2P, because the max number of P2P downloads have been attempted.
+  // blocks P2P download, because the max number of P2P downloads have been
+  // attempted. P2P sharing is still permitted.
 
   SetUpdateCheckAllowed(false);
 
@@ -996,14 +1002,15 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
+  EXPECT_FALSE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
 }
 
 TEST_F(UmChromeOSPolicyTest,
-       UpdateCanStartAllowedP2PBlockedDueToAttemptsPeriod) {
+       UpdateCanStartAllowedP2PDownloadBlockedDueToAttemptsPeriod) {
   // The UpdateCanStart policy returns true; device policy permits HTTP but
-  // blocks P2P, because the max period for attempt to download via P2P has
-  // elapsed.
+  // blocks P2P download, because the max period for attempt to download via P2P
+  // has elapsed. P2P sharing is still permitted.
 
   SetUpdateCheckAllowed(false);
 
@@ -1024,7 +1031,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
+  EXPECT_FALSE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
 }
 
 TEST_F(UmChromeOSPolicyTest,
@@ -1047,7 +1055,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1072,7 +1079,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(1, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1102,7 +1108,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(5, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1131,7 +1136,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(1, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1157,7 +1161,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(1, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1185,7 +1188,6 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_FALSE(result.p2p_allowed);
   EXPECT_EQ(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_TRUE(result.do_increment_failures);
@@ -1239,7 +1241,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_TRUE(result.p2p_allowed);
+  EXPECT_TRUE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
   EXPECT_GT(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
@@ -1269,7 +1272,8 @@
   ExpectPolicyStatus(EvalStatus::kSucceeded, &Policy::UpdateCanStart, &result,
                      update_state);
   EXPECT_TRUE(result.update_can_start);
-  EXPECT_TRUE(result.p2p_allowed);
+  EXPECT_TRUE(result.p2p_downloading_allowed);
+  EXPECT_TRUE(result.p2p_sharing_allowed);
   EXPECT_GT(0, result.download_url_idx);
   EXPECT_EQ(0, result.download_url_num_errors);
   EXPECT_FALSE(result.do_increment_failures);
diff --git a/update_manager/default_policy.cc b/update_manager/default_policy.cc
index 13de5bd..3de9755 100644
--- a/update_manager/default_policy.cc
+++ b/update_manager/default_policy.cc
@@ -51,7 +51,8 @@
   result->cannot_start_reason = UpdateCannotStartReason::kUndefined;
   result->download_url_idx = 0;
   result->download_url_num_errors = 0;
-  result->p2p_allowed = false;
+  result->p2p_downloading_allowed = false;
+  result->p2p_sharing_allowed = false;
   result->do_increment_failures = false;
   result->backoff_expiry = base::Time();
   result->scatter_wait_period = base::TimeDelta();
diff --git a/update_manager/policy.h b/update_manager/policy.h
index 2f88996..b801d91 100644
--- a/update_manager/policy.h
+++ b/update_manager/policy.h
@@ -145,8 +145,9 @@
   // needs to be persisted and handed back to the policy on the next time it is
   // called.
   int download_url_num_errors;
-  // Whether P2P downloads are allowed.
-  bool p2p_allowed;
+  // Whether P2P download and sharing are allowed.
+  bool p2p_downloading_allowed;
+  bool p2p_sharing_allowed;
 
   // Other values that need to be persisted and handed to the policy as need on
   // the next call.