The account was previously held by Interpublic Group agencies. Brand Connection ran the business in the UK, while Initiative managed it on the continent.
The account will be run out of Carat's Amsterdam offices.
Arjan Pomper, Carat Netherlands' chief executive officer, said: "I see a strong fit between Tommy Hilfiger and Carat. We have years of relevant experience. Our company is really looking forward to significantly contributing to Tommy Hilfiger's success in Europe."
Tommy Hilfiger's advertising tends to feature global celebrities, such as David Bowie and his supermodel wife Iman, and Beyoncé Knowles.
The company's European markets include the UK, France, Germany, Spain, Italy, Austria, the Netherlands, Ireland and Denmark.
The loss is another blow to Interpublic Group, which last month lost the £400m General Motors pan-European business to Aegis.
Carat wins £15m Tommy Hilfiger European account
Aegis's Carat has won the £15m pan-European media planning and buying account for fashion label Tommy Hilfiger.