Yes you can.
User signs up, uses @outlook. Your app declines it and explains that they block with no way to remedy, and explain they are a bad vendor.
Deeply unserious take.
As unserious as you claim, we had this exact problem.
Emails would be accepted by Outlook.com, but would never deliver. We had SPF/DKIM/DMARC and full reporting. They RBL'ed us with no remedy.
We told the customer to not use outlook.com BECAUSE we told them we could not guarantee any delivery of messages.