Risk and Strategy in Business, Image of hand stopping falling collapse wooden block dominoes effect from continuous toppled block, prevention and development to stability.What MLS CEOs need to know and how to defend your organization

Zillow’s strategy document disclosed in the Compass litigation reveals a clear operational plan to reshape the MLS around Zillow’s business priorities. The company is not simply reacting to policy changes. It is actively working to redesign distribution systems, media narratives, and regulatory environments in ways that weaken MLS control and increase Zillow’s leverage over consumer listing options offered by brokers.

This article outlines Zillow’s tactics and provides a defensive strategy that MLS CEOs can consider now. All references to Zillow’s planning are sourced directly from the evidence in the case and the Real Estate News story sourced from Zillow’s claims that MRED’s private listing program constitutes “digital redlining.” 

Zillow’s tactics directed at MLSs

Zillow’s strategy relies on coordinated pressure. Each tactic serves the same purpose. MLSs that cooperate are rewarded. MLSs that remain independent are isolated.

1. Narrative pressure through national media

Zillow is actively shaping the public narrative around MLS policies. The Real Estate News story accusing MRED’s private network of “digital redlining” is a textbook example of how Zillow weaponizes media channels.

The tactic is simple.

If an MLS adopts a policy that does not serve Zillow, Zillow can frame that policy as harmful to consumers. The MLS is cast as restrictive, secretive, or discriminatory. Zillow positions itself as the champion of transparency.

This narrative damages MLS credibility with consumers, brokers, and regulators.

2. Political and regulatory escalation

Zillow’s strategy calls for coordinated engagement with:

  • state regulators
  • elected officials
  • fair housing advocates
  • attorneys general
  • consumer protection groups

The goal is to elevate MLS policy disagreements to political issues. MLSs are not structured to fight legislative battles against a public company with national lobbying capacity.

Using political pressure shifts the power dynamic sharply in Zillow’s favor.

3. Favoring MLSs that align and deprioritizing those that do not

Zillow plans to give preferred MLSs:

  • early access to integrations
  • faster listing ingestion
  • improved product support
  • enhanced visibility tools

MLSs that resist Zillow’s demands receive delayed integrations or withheld enhancements. Zillow turns core infrastructure into leverage.

4. Bypassing MLSs through direct broker pipelines

Zillow is investing in workflows that allow brokers and agents to upload listings ahead of the MLS:

  • Pre-MLS listing add/edit – agents load to Zillow before the MLS (featured listing)
  • private inventory
  • new construction inventory
  • corrections
  • media assets

If an MLS restricts Zillow’s access, Zillow can recruit brokers directly. This turns the MLS into an optional middle layer.

Once Zillow controls the upstream pipeline, the MLS loses negotiating power.

5. Using showing services and transaction tools as pressure points

Zillow owns ShowingTime and key transaction workflow tools. These systems allow Zillow to:

  • favor MLSs that align with Zillow’s distribution strategy
  • deprioritize MLSs that resist
  • smooth integrations for selected partners
  • slow or complicate integrations for others

Control of the showing and transaction workflow gives Zillow influence over daily agent operations.

6. Concentrated ecosystem power

Zillow controls:

  • the leading consumer search portal
  • ShowingTime
  • DotLoop transaction management tools
  • Featured listing promotion systems
  • a national media narrative
  • lead distribution pipelines to Follow Up Boss
  • Develop pre-MLS listing intake channels

Together, these tools create a pressure system that MLSs cannot ignore.

Technician is checking air conditioner ,measuring equipment for filling air conditioners.

What MLS CEOs must do

A defensive strategy centered on MLS independence, interoperability, and digital sovereignty

The industry cannot rely on agreements, goodwill, or past relationships. Zillow’s internal strategy clarifies that MLSs need a defensive plan built on maintaining listing control, cooperation, and independence.

Below are key initiatives for MLS CEOs.

1. Strengthen MLS-owned consumer access through the Broker Public Portal

The Broker Public Portal (BPP) is the most important counterweight to Zillow’s strategy. It preserves MLS control of listing visibility, consumer transparency, and marketplace integrity.

MLSs should:

  • formalize support for BPP
  • adopt BPP as the preferred consumer search destination
  • promote BPP tools to brokers and consumers
  • develop a national narrative around MLS-controlled transparency

BPP reinforces MLS authority in the marketplace and prevents Zillow from defining transparency narratives without opposition.

2. Invest in diverse showing and transaction systems

MLSs must reduce dependence on Zillow-controlled tools. Options include:

  • Alternative showing services
  • Alternative transaction management and document management
  • regional interoperability
  • vendor partnerships that protect MLS data sovereignty

The more operational layers controlled by Zillow, the greater the pressure on your organization.

3. Create a unified MLS data access position

MLSs should build a shared regional or national policy framework that defines:

  • how early listing data is handled
  • how private listing networks are governed
  • how consumer transparency is protected
  • what “complete and timely” means
  • how MLSs respond to portal pressure campaigns
  • Require that all listings fed to a broker though IDX must be displayed. This would remove Zillow’s ability to not display listings from brokerages they do not like. 

A coordinated MLS policy stance makes it harder for Zillow to target individual MLSs or Brokers..

4. Strengthen broker relationships around transparency

Brokers need to understand what is at stake. MLSs should:

  • host broker briefings
  • highlight Zillow’s coercive tactics
  • explain how portals can weaponize
  • show how BPP protects broker independence
  • reinforce that MLS transparency supports brokers

Brokers will support MLS policies if they understand the long-term threat.

5. Build alliances with regulators before Zillow does

MLSs need to educate state regulators and policymakers now. The goal is to define transparency around:

  • fair housing
  • equal access
  • data accuracy
  • consumer rights
  • market stability

MLSs cannot let Zillow control this conversation.

6. Create a crisis communication plan

When Zillow publicly attacks an MLS policy, the MLS must have:

  • a coordinated media response
  • data-driven counterpoints
  • support from brokers and associations
  • alliances with neighboring MLSs
  • a narrative centered on fairness and accuracy

The industry can no longer afford to be reactive.

7. Invest in MCP-based AI infrastructure for MLS-owned consumer tools

MLSs should deliver search, alerts, and property insights directly through:

  • the Broker Public Portal
  • MLS-owned consumer tools
  • AI systems connected through MCP servers

This separates MLS-owned experiences from Zillow’s AI-driven consumer ecosystem.

The central message

Zillow has a strategy to use its tools, partnerships, and national platform to pressure MLSs into supporting a Zillow-centric marketplace. MLS CEOs must respond with a unified strategy that protects local control, transparency, and digital sovereignty.

The most effective path is a combination of MLS-owned consumer access, strong broker alignment, policy coordination, and investment in shared infrastructure such as the Broker Public Portal.

Zillow has not enacted these strategies, but they have a plan.