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How Toronto Reined In Big Tech How Toronto Reined In Big Tech
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This week the city of Toronto won a major fight against Big Tech. But unlike the battles underway in Washington, it wasn’t over digital domains like online privacy or ad sales; rather, it was over something deep out of the city’s industrial past: its waterfront. This week Toronto won a major fight against Big Tech. But unlike the battles underway in Washington, it wasn’t over digital domains like online privacy or ad sales; rather, it was over something deep out of the city’s industrial past: its waterfront.
Sidewalk Labs, a sister company of Google, had proposed rebuilding a chunk of land east of downtown, in exchange for using Toronto as a beta test. In pushing back against that plan, Toronto reached a compromise that lets Sidewalk go ahead, but firmly under public control — setting a precedent for how governments around the world can harness the potential for “smart cities” without letting Big Tech dictate the terms. Sidewalk Labs, a sister company of Google, had proposed rebuilding a chunk of land east of downtown in exchange for using Toronto as a beta test. In pushing back against that plan, Toronto reached a compromise that lets Sidewalk go ahead, but firmly under public control — setting a precedent for how governments around the world can harness the potential for “smart cities” without letting Big Tech dictate the terms.
After winning a competition in 2017 to build a smart city development on a 12-acre plot of derelict publicly owned land called Quayside, Sidewalk offered a dazzling array of innovations intended not just to push Toronto into the future, but also to act as a test bed and a model for similar developments worldwide.After winning a competition in 2017 to build a smart city development on a 12-acre plot of derelict publicly owned land called Quayside, Sidewalk offered a dazzling array of innovations intended not just to push Toronto into the future, but also to act as a test bed and a model for similar developments worldwide.
The proposals blended “The Jetsons” and “Portlandia”: heated sidewalks, robot trash collectors, mandated mass-timber construction, and a focus on bikes, transit and autonomous vehicles for getting around. But what really made the plan tick were ubiquitous sensors to collect huge amounts of human and environmental data to make everything run more efficiently.The proposals blended “The Jetsons” and “Portlandia”: heated sidewalks, robot trash collectors, mandated mass-timber construction, and a focus on bikes, transit and autonomous vehicles for getting around. But what really made the plan tick were ubiquitous sensors to collect huge amounts of human and environmental data to make everything run more efficiently.
Many Toronto residents liked the plan, at least at first; it tapped into a frustration — common here as in most modern cities — over the messiness and slowness in getting big ideas built. Suddenly, here was a rich benefactor who would pay for a dream district, overcoming budget shortfalls and bureaucratic reticence, and in the process make the city a global showcase. Many Toronto residents liked the plan, at least at first; it tapped into a frustration — common here as in most modern cities — over the messiness and slowness in getting big ideas built. Suddenly, here was a rich benefactor that would pay for a dream district, overcoming budget shortfalls and bureaucratic reticence, and in the process make the city a global showcase.
But Sidewalk kept pushing the boundaries. While the initial competition that the company won in 2017 was limited to the Quayside district, the company later asked for another 190-acre swath of the adjacent Toronto Port Lands neighborhood. That land, directly adjacent to the downtown business district, lies derelict now, but the city sees its potential for future development, and is spending $1 billion to improve flood protection. Giving it to Sidewalk would mean giving over control of one of the most promising parts of the city. But Sidewalk kept pushing the boundaries. While the initial competition that the company won in 2017 was limited to the Quayside district, the company later asked for a 190-acre swath of the adjacent Toronto Port Lands neighborhood. That land, which abuts the downtown business district, lies unused now, but the city sees its potential for future development, and is spending $1 billion to improve flood protection. Giving it to Sidewalk would mean giving over control of one of the most promising parts of the city.
And rather than engage with the city’s existing planning infrastructure, Sidewalk assembled its own: It established company-run advisory panels (which one of the authors attended), and reportedly engaged with thousands of people. And rather than engage with the city’s existing planning infrastructure, Sidewalk assembled its own: It established company-run advisory panels and reportedly discussed the plans with thousands of Toronto residents.
But to many in the community, the company was not really listening. Sidewalk put forward terms for the collection and management of the data coming in through the sensors, terms that raised local concerns about privacy, especially because they would require new rules on how to manage such a novel arrangement. But to many in the community, the company was not really listening. Sidewalk put forward terms for the collection and management of the data coming in through the sensors, terms that raised local concerns about privacy, especially because they would require new rules on how to manage such a novel arrangement.
Sidewalk’s ambition is typical of the way that tech companies are engaging with cities around the world. While they are offering potentially transformative technologies, they also want the same level of control to design, monitor and monetize the urban space that they have in the digital world. Sidewalk’s ambition is typical of the way that tech companies are dealing with cities around the world. While they are offering potentially transformative technologies, they also want the same level of control to design, monitor and make money from urban space that they have in the digital world.
The decision over whether to approve the plan was up to Waterfront Toronto, a government agency, and until the last minute it was unclear which way it would go. Boosters said the project would bring in countless jobs and global prestige, while warning that rejecting the plan would leave Toronto with a permanent mark as a Luddite metropolis.The decision over whether to approve the plan was up to Waterfront Toronto, a government agency, and until the last minute it was unclear which way it would go. Boosters said the project would bring in countless jobs and global prestige, while warning that rejecting the plan would leave Toronto with a permanent mark as a Luddite metropolis.
Instead, the agency, backed by growing public opposition to the company’s overreach, pushed for a compromise. Sidewalk can proceed, but only on the original 12 acres. It has to work with local developers. And any data collected would be treated as a public asset, not the company’s property. If the company plays well, more development opportunities may follow.Instead, the agency, backed by growing public opposition to the company’s overreach, pushed for a compromise. Sidewalk can proceed, but only on the original 12 acres. It has to work with local developers. And any data collected would be treated as a public asset, not the company’s property. If the company plays well, more development opportunities may follow.
The deal isn’t done — Toronto and Sidewalk Labs have another five months to evaluate the proposal, and either side could walk away. That means that the city has to keep its focus on the public interest. What, in that context, does success mean? For Sidewalk, it might mean profits, or proofs of concept; for the city, it means widely shared improvements in things like jobs, the environment, public health and housing costs. The deal isn’t done — Toronto and Sidewalk Labs have another five months to evaluate the proposal, and either side could pull out. That means that the city has to keep its focus on the public interest. What, in that context, does success mean? For Sidewalk, it might mean profits, or proofs of concept; for the city, it means widely shared improvements in things like jobs, the environment, public health and housing costs.
The city has to be willing to walk away. Sidewalk is not the only entity interested in the Quayside land, even if it has some very shiny ideas to offer. But the city also has strong incentives to make the deal work. Managed properly, it could be a boon for Toronto’s future.The city has to be willing to walk away. Sidewalk is not the only entity interested in the Quayside land, even if it has some very shiny ideas to offer. But the city also has strong incentives to make the deal work. Managed properly, it could be a boon for Toronto’s future.
Toronto’s experience with Sidewalk Labs to date shows that cities do not need to give up government’s responsibility to prioritize the public interest while pursuing urban innovation. And that’s a lesson not just for other places considering privately developed smart city plans, but also for any government grappling with the challenges and promise of Big Tech.Toronto’s experience with Sidewalk Labs to date shows that cities do not need to give up government’s responsibility to prioritize the public interest while pursuing urban innovation. And that’s a lesson not just for other places considering privately developed smart city plans, but also for any government grappling with the challenges and promise of Big Tech.
Shoshanna Saxe is an assistant professor of civil and mineral engineering at the University of Toronto. Matti Siemiatycki is the interim director of the School of Cities and an associate professor of geography and planning at the University of Toronto. Shoshanna Saxe is an assistant professor of civil and mineral engineering at the University of Toronto, where Matti Siemiatycki is the interim director of the School of Cities and an associate professor of geography and planning.
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