''Edward Darcy Esquire v Thomas Allin of London Haberdasher'' (1602) 74 ER 1131 (also spelt as "Allain" or "Allen" and "Allein" but most widely known as the ''Case of Monopolies''), was an early

landmark case Landmark court decisions, in present-day common law legal systems, establish precedents that determine a significant new legal principle or concept, or otherwise substantially affect the interpretation of existing law. "Leading case" is commonly ...

in English law, establishing that the grant of exclusive rights to produce any article was improper (

monopoly A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a speci ...

). The reasoning behind the outcome of the case, which was decided at a time before

court A court is any person or institution, often as a government institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in acco ...

s regularly issued written opinions, was reported by Sir Edward Coke.

Facts

The

plaintiff A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of t ...

, Edward Darcy, a

Groom of the Chamber Groom of the Chamber was a position in the Household of the monarch in early modern England. Other ''Ancien Régime'' royal establishments in Europe had comparable officers, often with similar titles. In France, the Duchy of Burgundy, and in Eng ...

in the court of Queen Elizabeth, received from the Queen a license to import and sell all

playing cards A playing card is a piece of specially prepared card stock, heavy paper, thin cardboard, plastic-coated paper, cotton-paper blend, or thin plastic that is marked with distinguishing motifs. Often the front (face) and back of each card has a f ...

to be marketed in

England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...

. This arrangement was apparently secured in part by the Queen's concern that card-playing was becoming a problem among her subjects and that having one person control the trade would regulate the activity. When the defendant, Thomas Allin, a member of the

Worshipful Company of Haberdashers The Worshipful Company of Haberdashers, one of the Great Twelve City Livery Companies, is an ancient merchant guild of London, England associated with the silk and velvet trades. History and functions The Haberdashers' Company follows the M ...

, sought to make and sell his own playing cards, Darcy sued, bringing an

action on the case The writs of trespass and trespass on the case are the two catchall torts from English common law, the former involving trespass against the person, the latter involving trespass against anything else which may be actionable. The writ is also known ...

for damages.Sir Edward Coke, ''The Selected Writings and Speeches of Sir Edward Coke'', ed. Steve Sheppard
(Indianapolis: Liberty Fund, 2003). Vol. 1. 3/31/2017.

Judgment

The Queen's Bench court delivered judgment for the defendant, resolving that the Queen's grant of a monopoly was invalid, for several reasons: #Such a monopoly prevents persons who may be skilled in a trade from practicing their trade, and therefore promotes idleness. #Grant of a monopoly damages not only tradesmen in that field, but everyone who wants to use the product, because the monopolist will raise the price, but will have no incentive to maintain the quality of the goods sold. #The Queen intended to permit this monopoly for the public good, but she must have been deceived because such a monopoly can be used only for the private gain of the monopolist. #It would set a dangerous precedent to allow a trade to be monopolized – particularly because the person being granted the monopoly in this case knew nothing about making cards himself, and where there was no law that permitted the creation of such a monopoly.

Significance

''Darcy v Allin'' was the first definitive statement by a court that state-established monopolies are inherently harmful and therefore contrary to law. The case has since come to be known as ''The Case of Monopolies'', and the arguments set forth therein have served as the basis for modern antitrust and competition law. It drew considerably on historical evidence of rulers' antipathy to monopolies, as follows.

For we read in Justinian that monopolies are not to be meddled with, because they do not conduce to the benefit of the common weal but to its ruin and damage. The civil Laws forbid monopolies: in the chapter of monopolies, one and the same Law. The Emperor Zeno ordained that those practicing monopolies should be deprived of all their goods. Zeno added that even imperial Prescripts were not to be accepted if they granted monopolies to anyone.

Notes

External links

Text of report at libertyfund.org
{{Law History of competition law 1599 in English law Edward Coke cases 1599 in England Court of King's Bench (England) cases

Facts

Judgment

Significance

See also

Notes

External links