A conflict of interest exists when a secondary interest could influence, or reasonably appear to influence, professional judgement about a manuscript.
Reviewers must decline an invitation if they have a recent collaboration, a shared grant, a financial interest, a close personal relationship, or the same institutional affiliation as an author in a way that would reasonably be seen as biasing the review.
If you are unsure, disclose the relationship to the editor before accepting. Do not review a paper in order to delay a competitor, and do not use knowledge of the submission for your own advantage.
Editors must recuse themselves from manuscripts authored by colleagues at their current institution, recent co-authors, family members, or anyone with whom they have a financial or close personal relationship. Guest editors are bound by the same rule.
A recused editor takes no part in reviewer selection or the decision. The manuscript is assigned to another editor.