No licensee of an FM broadcast station shall have any arrangement with a network organization which prevents or hinders another station serving substantially the same area from broadcasting the network's programs not taken by the former station, or which prevents or hinders another station serving a substantially different area from broadcasting any program of the network organization: Provided, however, That this section does not prohibit arrangements under which the station is granted first call within its primary service area upon the network's programs. The term “network organization” means any organization originating program material, with or without commercial messages, and furnishing the same to stations interconnected so as to permit simultaneous broadcast by all or some of them. However, arrangements involving only stations under common ownership, or only the rebroadcast by one station of programming from another with no compensation other than a lump-sum payment by the station rebroadcasting, are not considered arrangements with a network organization. The term “arrangement“ means any contract, arrangement or understanding, express or implied.

[42 FR 16422, Mar. 28, 1977, as amended at 57 FR 48333, Oct. 23, 1992]