A system and method for performing licensing monitoring and compliance within a service provider platform are provided. The system comprises a memory and a processor configured to execute instructions stored within the memory. The system further comprises a central instance that executes on the processor and comprises a license repository containing licensing data for application components. The system further comprises a customer instance that includes a third-party application component installed within the customer instance from an application store. The system further includes a licensing module. The third-party application component is switchable between a monitor mode in which the licensing module reports usage of the third-party application component to the central instance and an enforcement mode in which the usage is controlled on the customer instance based on the license repository.