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It is intended primarily to ensure that an equal amount of reasonably priced advertising time is made available to competing candidates. It also applies to "free" appearances.

In fact, the reason it applied to SNL is because SNL is not a news program

NBC gave him the time because the law requires them to do so. So not "ludicrous." If you don't like the law, take it up with your elected member of Congresss since it is a statutory requirement. Although don't expect to get much headway since it has very broad Democratic party support.

Here is more information if you'd like to learn more about the "equal time" -- really "equal opportunities" rule: https://www.fcc.gov/sites/default/files/political_programming_fact_sheet.pdf