The prevailing view at Are abstracts confidential during the review process? is that all information in the review process is considered confidential, including the information sent to you before you agree (authors, title, abstract).
Two days ago, a collaborator sent me an interesting project proposal which I thought was a really good idea. Yesterday, I received a request to review a paper (from a different group) that seems to have done pretty much the same thing.
I don't want my collaborators to waste time doing something already done. I also don't want to break confidentiality by telling the collaborators one of the leading groups in the field has already done the thing. What would be the 'correct' thing to do here? I have accepted the review because it's within my area of expertise, but I don't know what, if anything, I can tell my collaborator about the fact that their idea has already been done in a paper I'm reviewing.