  Big data collection practices using Internet of Things (IoT) pervasive
technologies are often privacy-intrusive and result in surveillance, profiling,
and discriminatory actions over citizens that in turn undermine the
participation of citizens to the development of sustainable smart cities.
Nevertheless, real-time data analytics and aggregate information from IoT
devices open up tremendous opportunities for managing smart city
infrastructures. The privacy-enhancing aggregation of distributed sensor data,
such as residential energy consumption or traffic information, is the research
focus of this paper. Citizens have the option to choose their privacy level by
reducing the quality of the shared data at a cost of a lower accuracy in data
analytics services. A baseline scenario is considered in which IoT sensor data
are shared directly with an untrustworthy central aggregator. A grouping
mechanism is introduced that improves privacy by sharing data aggregated first
at a group level compared as opposed to sharing data directly to the central
aggregator. Group-level aggregation obfuscates sensor data of individuals, in a
similar fashion as differential privacy and homomorphic encryption schemes,
thus inference of privacy-sensitive information from single sensors becomes
computationally harder compared to the baseline scenario. The proposed system
is evaluated using real-world data from two smart city pilot projects. Privacy
under grouping increases, while preserving the accuracy of the baseline
scenario. Intra-group influences of privacy by one group member on the other
ones are measured and fairness on privacy is found to be maximized between
group members with similar privacy choices. Several grouping strategies are
compared. Grouping by proximity of privacy choices provides the highest privacy
gains. The implications of the strategy on the design of incentives mechanisms
are discussed.
