Mobile chip maker Qualcomm said on Thursday (Beijing time) that it could face a civil action from US authorities over alleged bribery of officials associated with State-owned companies in China.

With smartphone sales tapering off in the US, China is a major market for Qualcomm, but doing business in the country has included disagreements over royalties and an antitrust investigation.

In its second-quarter report, Qualcomm said it has received a notice from the Securities and Exchange Commission (SEC), which advised it of a preliminary determination to recommend an enforcement action against the company for violating the Foreign Corrupt Practices Act (FCPA).

Qualcomm said the civil action could seek remedies including "disgorgement of profits, the retention of an independent compliance monitor to review the company's FCPA policies and procedures, an injunction, civil monetary penalties and prejudgment interest."

Qualcomm said it first learned of and disclosed the SEC investigation in 2012.

In its own investigation, Qualcomm said it found instances in which "special hiring consideration, gifts or other benefits were provided to several individuals associated with Chinese State-owned companies or agencies."

The chip maker believes the total value of the benefits was less than $250,000.

Qualcomm said it received a notice from the SEC's Los Angeles office on March 13 advising it of the preliminary determination. On April 4, the San Diego company submitted an explanation of why it believes it has not violated the FCPA.

Earlier this month, Hewlett-Packard (HP) said it would pay $108 million to settle potential violations of the FCPA in Russia, Poland and other countries and regions. They include allegations that an HP executive paid bribes worth over $500,000 in exchange for help winning contracts to supply computer equipment to Polish police headquarters.

China's anti-monopoly regulator is also investigating Qualcomm, which it suspects of overcharging and abusing its market position. Those allegations could lead to fines of more than $1 billion.

On a quarterly conference call with analysts on Wednesday, Qualcomm executives repeatedly denied the company had broken the law but declined to provide more details on the SEC allegations.

Scrutiny of Qualcomm's practices in China come at a key moment in its transformation from a smartphone manufacturing hub to a major consumer market in its own right.