I've been writing about application authorization here: https://www.osohq.com/academy/chapter-2-architecture (I'm CTO at Oso, but these guides are not Oso specific). It covers this in the later part of the guide.

Depending on your requirements, yes that's kind of what happens if you want to centralise. It can make sense for Google-scale problems where you really do need to handle the complex graph of relationships between all users and resources, and doing that in any one service is non-trivial.

In practice though, a lot of service-oriented architectures can get the same benefits by having a central user management service, and keeping most of the authorization in each service. That central service can provide information like what organizations/teams/roles etc. the user belongs to, and then the individual services can make decisions based on that data.

This is the approach I covered with the hybrid approach. With this you can still implement most complex authorization models.