The Byzantine Empire emerged as the surviving half of the Roman Empire, while the western half crumbled. Unlike the West, the Eastern Empire, after 476 CE, remained stable, with a strong military and capable administrators. Marked changes did occur as Greek culture, language, and religion slowly took over. Constantinople’s location straddling the Bosporus Straits meant it controlled trade with the East.

Venice materialized as a rising maritime power, especially in the Adriatic. Like the Byzantines, the Venetians relied on their navy to protect their trade. Venice’s rise began in the 6th century under Byzantine authority but remained semi-independent. The Greeks saw the city on the marshes as a bulwark for their Italian Byzantine domains.
Venice went from Duchy to Republic with the 697 elections of the first Doge. This ruling office proved critical to Venice’s future. The office had political limits, but the Doge’s authority meant decisions came from him.
The Alliance and Cooperation

The 8th to 10th centuries marked a shift in the relationship between the Empire and the Republic. First, Venice gained more autonomy. Built among lagoons and marshes, Venice needed ships to defend against Lombard and Slavic raids. Inspired by the Byzantine dromond, Venice created a version-the galea sottile.
Three battles and campaigns helped expand this relationship. Between 830 and 1000 CE, Dalmatian pirates launched attacks from Dalmatia’s (Croatia) maze of inlets, channels, and coves. These fierce pirates, known as paganoi to the Byzantines, struck quickly and disappeared just as fast. The Venetians hit back but with mixed results. The threat only ended when Venice seized the area.
In 871, the Doge led a fleet to help liberate Bari (Southern Italy) from the Arabs. This, along with the anti-pirate patrols, showed Venice’s expanding ability. In 992, the Doge signed an economic and military treaty with the Empire, pledging assistance against the growing Norman threat.
By now, Venetian trading colonies existed in some ten important Byzantine cities.
The Golden Bull of 1082’s Complications

In 1081, the Normans invaded the Balkans (Albania), taking the key port of Dyrrhachium. The Byzantines, already dangerously stretched from different crises, requested Venetian assistance. The Venetian fleet arrived and soundly defeated the Normans. For this, Emperor Alexios I and Venice signed the Golden Bull of 1082. In a nutshell, this lopsided agreement granted the Venetians tax exemptions and premier harbor facilities in numerous ports, including Constantinople and their enclaves. The Doge received a royal title and stipend in exchange for naval support.
From Alliance to Breaking Point

The Gold Bull worked for a while, but the situation gradually soured. The Venetians’ tax exemptions riled the still-paying Byzantine merchants. Next, Venetian merchants settled in various areas, controlling trade and deepening resentment. By now, their and Imperial tax revenues had declined.
The Venetians practiced extraterritoriality or exemption from local laws. During the 12th century, different Byzantine emperors attempted to limit the Republic’s influence with similar bulls to their bitter rivals, Genoa and Pisa. Due to competition between these city-states, fighting broke out, even in Constantinople. Byzantine officials delicately tried to appease all three powers. In 1171, the frustrated Byzantine government acted. Emperor Manuel I ordered the mass arrest of Venetians and seized all property. The resulting Byzantine-Venetian War lasted until an 1177 truce was signed. But sour relations never truly healed.
A Crusade Diverted

Venice, still seething from the 1171 incident and economic damage, waited and plotted. This smoldering economic feud simmered with some fighting for decades. The Venetians saw their chance with the newly formed Fourth Crusade. The Fourth Crusade in 1201 hired Venetian ships but ran short of funds. Unable to pay, the crafty Doge Enrico Dandolo offered this: retake Zara for Venice and wipe the debt clean. In late 1203, they moved to Constantinople. After the Crusaders refused to pay, they broke through. Over the course of three days, the warriors sacked the ancient capital city.
Crusaders and Venetians now founded the Latin Empire of Constantinople in 1204. This event dealt a fatal blow to the Byzantines, eliminating Venice’s bitter rival and establishing Venice as a dominant power.